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Credit Suisse Disruptive Technology Portfolio Mover Of The Week: ATI Technologies

And index of companies shaking up traditional business models.
Advanced Micro Devices' surprise acquisition of graphics chipmaker ATI Technologies was a critical event for the Credit Suisse Disruptive Technology Portfolio last week, but it treated the acquired company very differently than it did the acquirer. The $5.4 billion transaction was a boon for portfolio stock ATI, as it rocketed 26% on the news. AMD, not part of the portfolio, was less fortunate. Concern about integration risks and the $2.5 billion in debt AMD will absorb to finance the deal hurt it.

Given the fierce competition between Intel and AMD, there's fear that Intel could preclude ATI's chips from working with its processors. In addition, distributors such as Dell may be less inclined to bundle ATI's chips with Intel-powered PCs. ATI generates around $90 million in annual sales with Intel PCs, and concerns about losing this revenue contributed to AMD falling about 5% following merger news. (For more on AMD's acquisition, see "AMD Chases Intel's Graphics Ability With ATI Deal".)

Last week was a tough one for the Disruptive Technology Portfolio, which fell 1.3% as the S&P 500 rose 0.7%.

Disruptive Technology Portfolio
    Stock Price
7/26/06
% Change
Weekly
% Change
Year To Date
AAPL Apple Computer $63.87 18.1% -11.2%
ATYT ATI Technologies $19.83 25.9% 16.7%
BIDU Baidu.com, Inc. $91.97 0.4% 46.2%
BBBB Blackboard $28.13 3.3% -2.9%
BRCM Broadcom $22.02 -18.4% -29.9%
CNQR Concur Technologies $13.16 -3.9% 2.1%
CRM salesforce.com $24.48 6.7% -23.6%
CTSH Cognizant Technology $62.80 -2.9% 24.9%
DRIV Digital River $41.46 3.6% 39.4%
EBAY Ebay $24.43 -5.8% -43.5%
GOOG Google Inc. $385.50 -3.4% -7.1%
INFY Infosys $40.30 -0.7% -50.2%
KNXA Kenexa $23.43 -20.3% 11.0%
MFE McAfee $23.94 0.6% -11.8%
MRVL Marvell $17.34 -7.1% -69.1%
NOVL Novell $6.47 3.5% -26.7%
NSR Neustar $30.15 -2.9% -1.1%
NVDA Nvidia Corp. $20.25 3.3% 10.8%
RHAT Red Hat $23.77 -1.7% -12.8%
RIMM Research in Motion $65.37 1.5% -1.0%
RNOW RightNow Tech $12.09 -21.8% -34.5%
TLEO Taleo $7.91 -29.2% -40.4%
TIBX TIBCO, Inc. $7.68 4.8% 2.8%
TXN Texas Instruments $29.46 4.5% -8.1%
ULTI Ultimate Software $20.80 8.8% 9.1%
VRSN Verisign $18.49 -12.0% -15.6%
WEBX WebEx Communications $32.45 -1.2% 50.0%
WIND Wind River $8.14 -3.9% -44.9%
WIT Wipro $12.29 2.4% 2.8%
YHOO Yahoo! Inc. $27.08 7.5% -30.9%
  DTP Index Value 199.89 -1.3% -9.5%
SPX S&P 500 1,268.40 0.7% 1.6%

© 2006 Credit Suisse. Important disclosure information about potential conflicts of interest regarding the companies referenced above may be obtained at csfb.com/researchdisclosures, or by E-mailing [email protected] or calling 1-877-291-2683.

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Disruptive Technology Portfolio