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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Guy Peter Cordaro who wrote (59605)	11/1/2000 1:28:17 PM
From: GVTucker	Read Replies (3) \| Respond to of 93625

The market had already discounted a decent probability that Samsung would sign. The market hadn't discounted the fact that Intel might drop DRDRAM completely.

To: Guy Peter Cordaro who wrote (59605)	11/1/2000 1:34:17 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 93625

RE:"Why is Rambus still trading below Mondays close of 54.5? With this kind of news, we should be up 15-20 points. I don't understand why we aren't up big on this news." Because most of the greed has already been factored in and fear is starting to rear it's ugly head. The fear is that even though Rambus signs up a bunch of Fabbers, their days are numbered as the industry will more quickly move on to a new standard without Rambus. In psycological terms they call this extinction...increasingly less of a reaction to the same stimulus. Fear of a tech slowdown isn't helping either. Jim

To: Guy Peter Cordaro who wrote (59605)	11/1/2000 1:37:13 PM
From: Don Green	Respond to of 93625

Guy> I don't understand why we aren't up big on this news. One reason! Downgrades sink chip equipment stocks By Reuters Special to CNET News.com November 1, 2000, 10:05 a.m. PT URL: news.cnet.com NEW YORK--Semiconductor equipment makers took a tumble Wednesday, after Jay Deahna, an analyst with Morgan Stanley Dean Witter, cut ratings and earnings estimates on four bellwether stocks on concerns about low capital spending in the computer chip industry. Deahna lowered his forecast for 2001 global semiconductor capital spending growth to 10 percent to 15 percent from 30 percent plus. The analyst said in a note to clients that concerns about weakness in personal computer and telecom equipment spending next year was prompting chipmakers to become increasingly cautious regarding their 2001 capital spending plans. He then downgraded KLA-Tencor, Applied Materials, Lam Research and Advanced Energy Industries to "outperform" from "strong buy" ratings. "It's valid to have concerns about these stocks, as lower capital spending will eventually filter down to the chip equipment makers," said Henry Asher, a portfolio manager with Northstar Group, which includes semiconductor makers such as Intel and Analog Devices among its holdings. "But this may be a an interesting entry point (to buy equipment makers), as we missed them on the way up and the fundamentals over a long period still seem strong," Asher said. In midday trading, KLA-Tencor fell $1.44, or 4 percent, to $32.38; Applied Materials fell $2.44, or 4.6 percent, to $50.69; Lam Research fell 75 cents, or 3.9 percent, to $18.63; and Advanced Energy Industries slipped 25 cents, or 1.5 percent, to $17. Deahna also cut his 2001 earnings estimate for Applied Materials to $3.11 a share from $3.90 and his 12-month price target to $60 from $120. Advanced Energy's earnings expectation for 2001 was lowered to $2 a share from $3, though the target price remained at $45. KLA-Tencor's earnings view for 2001 was lowered to $2.15 a share from $2.45, with the target price unchanged at $60. Deahna lowered the 2001 earnings estimate to $1.71 from $2.55. His 12-month target price remained at $40. "Over the next several quarters, we will likely lower numbers on most of the companies we cover," Deahna said in a research note.