Semi Equipment Analysis Message Board

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Technology Stocks : Semi Equipment Analysis

SOXX 318.06

+1.4%

Jan 5 4:00 PM EST

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To: Gottfried who wrote (6898)	11/14/2002 12:08:35 PM
From: robert b furman	of 95675

HiG, From best I can garner,these guys are all on a amaintenance buildout. They've had manditory time off,payroll cuts,and job reductions. So some backlog is always being built - probably the most likely to ship first.Even at that they carry alost complete machines as Work In Process. Building it faster probably would result in pushouts or cancelations and at least a huge investment in WIP - not good in any alternative. Much better to park liquidity in cash and short term investments to offset losses to best degree possible. Many of these companies do do research that would provide future orders if they build a machine that meets future specs. The future specs always design in some process change that results in production efficiencies. R&D done effectively satisfies the next wave of future machines and thusly the next wave of orders. At the toip of the cycle - very littlr R&D goes on as production of new generation equipment at a fast rate is the key emphasis. Next generation acceptance and technology upgrades is what we need to see now. Those that win will survive for at least the next cycle. Bob

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