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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (38385)	10/17/2000 1:42:00 PM
From: Proud_Infidel	Respond to of 70976

VSEA is now trading at about 4X '01 eps estimate, assuming they remain intact of course. This is utterly insane. BK

To: Sun Tzu who wrote (38385)	10/17/2000 1:49:09 PM
From: Ian Davidson	Read Replies (2) \| Respond to of 70976

This is from Briefing.com....FWIW Chip Equipment Stocks : It's not a good day to be holding chip equipment companies as they are getting attacked from multiple angles. Chase H&Q downgraded twelve of the stocks while CS First Boston lowered estimates on bellwether Applied Materials (AMAT) citing slower demand especially for PCs and cell phones. But the real catalyst for the sell-off is Teradyne (TER) which is trading down 22%. TER disclosed on its conference call that it would miss DecQ estimates by a wide margin as they guided estimates to the $0.66-$0.67 range vs $0.91 consensus as a result of softening demand. This is important because they're the first to make this admission. Often you'll hear companies making excuses such as a missed order at the end of the quarter etc. However, it's viewed as a bad sign when the first one cites slowing demand. Often, you'll see these companies that say they were unable to book an order in time warn again the next quarter, then eventually say: ok, now we're seeing slowing demand....The chip equipment sector recently has been the beneficiary of increased cap-ex spending by the chip makers. However, a slowing in demand for end products is a new concern which should decrease spending. Companies which supply equipment to chipmakers with exposure to PCs and cell phones are the most exposed to weakness....Even Novellus (NVLS) which actually guided estimates higher for Q4 is suffering from guilt by association as the shares are trading off 10%. Also, with Intel reporting after the bell today, investors are worried about lower guidance out of Intel going forward. A number of analysts have come out over the past two days saying they would be selling INTC on rallies ahead of its earnings release. That sentiment is spilling onto the chip equipment makers as well as investors are realizing it's not worth the risk to hold these stocks as Intel releases its numbers. Analysts are surmising that Intel and AMD may announce reductions in cap-ex budgets for 2001. -- Robert J. Reid, Briefing.com