Here is a "take" from Infrastructure on the present situation.
<<(BUSINESS WIRE)--April 3, 2002--INFRASTRUCTURE, the leading independent research organization covering the investor's view of the semiconductor manufacturing industry, recently published its views on the health of the industry and its analysis of company valuations. The industry stocks have enjoyed a rally as business has bounced off the lows of last year, however, most of this movement has materialized in the larger cap companies.
Carl Johnson, INFRASTRUCTURE's President, noted that, "Right now we believe we are about to exit the 'Total Freeze' and technology spending will keep the industry bouncing along at run rates ranging from 100 to 150 percent off the ultimate bottom posted in the fourth quarter of last year." He added, "However, valuations are extended in many of the high-cap issues. Many of our small cap stocks still look reasonably valued."
Ron Leckie, INFRASTRUCTURE's CEO, commented, "We are certainly positive about the industry's outlook from this point, but in terms of 2002's likely year-over-year growth, we find it difficult to be as optimistic as some analysts." Leckie added, "We will see a progressive recovery with the chip industry climbing out first, and it will pull up the materials suppliers, foundries and subcontract test/assembly houses. Utilization levels are still low, so capacity-driven equipment buys will not be seen until well into 2003.">> |
