Helix Technology, a cold play on semiconductor equipment Message Board

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Technology Stocks : Helix Technology, a cold play on semiconductor equipment

HELX 37.98

+0.6%

Nov 25 4:00 PM EST

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To: mopgcw who wrote (1031)	8/21/2002 4:13:00 AM
From: mopgcw	Read Replies (1) of 1227

Chip-Gear Industry's Recovery Will Be 'Protracted and Modest,' Analyst Says By DONNA FUSCALDO DOW JONES NEWSWIRES NEW YORK -- Banc Of America Securities reduced its semiconductor-capital spending estimate for 2003, mainly because personal-computer chip makers are unlikely to increase spending next year and because memory-chip makers will likely continue to invest in equipment at very low levels. SEARCHING FOR A RECOVERY • Signs of Double Dip Emerge in Chip-Equipment Sector 08/15/02 • Chip Sales Were Flat in June, but Industry Is Still Optimistic 8/05/02 • Chip Makers Look to 2003 as Slump Lingers 7/09/02 In a research report issued Monday, analyst Mark FitzGerald said Intel Corp., one of the largest purchasers of chip equipment, will scale back its capital spending budget in 2003 to $4 billion from the $5 billion to $5.3 billion range in 2002. The analyst is now calling for total spending in 2003 to increase 7.1% year over year to $28.8 billion, which is lower than his previous estimate for 10% to 20% growth. "If we are correct," wrote the analyst, "then the recovery will be the most protracted and modest recovery in the industry's history." While Mr. FitzGerald said the semiconductor-equipment stocks could rally from their recent lows because valuations are "reasonable," he said that those rallies will eventually stall because of the lack of earnings power. Mr. FitzGerald's outlook is the latest in a string of forecasts issued in recent weeks by analysts who acknowledge that the semiconductor industry isn't recovering from its steep slowdown as fast as expected. A Standard & Poor's report last week suggested that chip-equipment industry order rates will decline in the second half of 2002, but that a recovery will resume in 2003. In the beginning of the year, chip-equipment companies enjoyed a surge in orders as semiconductor makers geared up for what was expected to be a robust second half. Since then, a slew of chip makers have cut their capital-spending targets, and orders at the equipment makers have declined precipitously.

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