Speedfam Shares Climb As Chip-Equipment Firm Recovers From Asian Flu
Dow Jones Online News, Wednesday, February 04, 1998 at 17:57
NEW YORK -(Dow Jones)- Speedfam International Inc. shares jumped
27.1% Wednesday as the semiconductor-equipment sector rallied back from
a bout of the Asian flu, several analysts said.
Speefam stock (SFAM) closed at $30.50, up $6.50 on Nasdaq volume of
1.6 million shares, more than three times its average daily turnover of
417,000.
NationsBanc Montgomery Securities Inc. analyst Brett A. Hodess said
Speedfam is among a group of semiconductor stocks unfairly maligned for
their exposure to Asian markets.
"Japan and Asia combined represent about half of the semiconductor
market," he said.
That exposure, combined with concerns that Asia's demand for
semiconductor products may wane as the region tightens its belt, fueled
a recent selloff of companies like Speedfam, he added.
Hodess said the company, whose Asian sales comprise 20% of its total,
was particularly hard hit in recent weeks. The stock fell to a year low
of $19.125 Dec. 11, down from a high of $60.875 only two months earlier.
BT Alex. Brown Inc. analyst Byron N. Walker concurred with Hodess's
assessment, adding that Wall Street may be acting in anticipation of a
recovery in technology sectors going forward this year.
"The movements today are based on people wanting to get ahead of an
expected turn going on later this year," he said. Walker cautioned,
however, that the arrival of such an upswing "is far from clear."
Still, the analyst said Speedfam is the logical target for a feeding
frenzy among semiconductor stocks, given the thorough trouncing it
received in the selloff.
"The market is looking for companies that are particularly
downtrodden," he said.
A company spokeswoman said she wasn't aware of any material news that
could be driving Speedfam's rally.
-By Justin A. Oppelaar; 201-938-5175
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