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Technology Stocks : Eaton (ETN) is definitely not overvalued! -- Ignore unavailable to you. Want to Upgrade?

To: DSPetry who wrote (198)	7/27/1999 8:17:00 PM
From: Walter Morton	Respond to of 338

From Standard & Poors: CHIP EQUIPMENT MAKERS ATTRACTIVE The cyclical semiconductor equipment makers should continue to recover from their virtual collapse in 1998, driven by a more robust capital spending environment. Since the trough in September last year, orders have risen more than 170%. The uptrend should continue, thanks to rapid growth in semiconductor-rich applications, such as PCs, cellular phones, autos and appliances. Estimates call for chip sales to approximate $182 billion by 2001 vs. $126 billion in 1998. As a result, chip makers will need to replace existing equipment with manufacturing tools to support new technological requirements, especially the shrinking of chip linewidths from 0.35 micron to .025 and below. Much of the capacity put in place just a few years ago will become obsolete over the next year or two. In the volatile group, we recommend three large-cap companies that have competitive advantages: Applied Materials, KLA-Tencor, and Teradyne. No mention of ETN, but I think ETN will also do well.