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To: John Carragher who wrote (78415)	8/5/2000 9:55:53 AM
From: William Hunt	Respond to of 152472

John ---really the last paragraph is why Barron's is publishing this article : Commun Chip Stks Dn; Analysts Call Sell-Off 'Emotional' Dow Jones Newswires NEW YORK -- Communication chip stocks sagged Friday, some for a second consecutive day, and analysts are discounting the sell-off as an emotional reaction to recent bad news in the semiconductor sector. "Everyone's...on edge" in the sector, and any bit of negative news sends investors running, said Stan Kiang, associate to Chase H&Q analyst Sudeep Balain. Motorola's announcement that it will cut forecasts on the production of phone handsets panicked already scared investors, said Kiang. Negative sentiment has been "hoovering over the industry" ever since Salomon Smith Barney analyst Jonathan Joseph last month predicted a leveling off in growth of some semiconductor issues, he said. As for signs of a slowdown in growth, Kiang says they just aren't there. "The cycle is only about a third of the way through...and demand is still very robust," he said. In addition, Kiang attributed Motorola's lowered guidance for its supplies to a need to increase operating margins, not slowing demand, he said. Brian Marshall, analyst at Chase H&Q, also disregarded the sell-off as "an emotional reaction by investors." "What Motorola's saying is not new news. People knew they were decreasing guiding to suppliers...because they had over-ordered," not because demand is slowing, he said. Both analysts see increased volatility for the remaining part of the summer. "People are on vacation and less volume can move stock more easily," said Marshall, adding that he sees the semiconductor stocks appreciating in the second half of the year "as fears diminish and (investors) start to look at industry fundamentals." BEST WISHES BILL