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Technology Stocks : ChipPAC (CHPC) -- Ignore unavailable to you. Want to Upgrade?

To: jttmab who wrote (11)	11/28/2000 9:16:22 PM
From: Sun Tzu	Respond to of 15

This does not look good. We'll see how the stock will react to the news. All in all, I think there is a bear trap forming soon. Nasdaq could only go down another 200 points at the most. But when it bounces back, it'll be fast and hard. Just the same, except for the ride on the back of the bounce back, I am not too optimistic on semies and semicaps. So I'll trade the ones I like, but mostly I will stay with selected stocks like QCOM. BTW, someone posted a message from Michael Murphy on how bullish Singapour is on the semiconductor outlook. I hate to say it, but what makes Murphy think that Singapour officials are any less prone to mistakes, wishful thinking, or outright deception about something in which they have huge emotional and financial stake is beyond me. Still, when the bear trap snaps, the semies will rebound with vengence, just because they have a huge following and have been decimated. later, ST biz.yahoo.com Tuesday November 28, 6:50 pm Eastern Time ChipPAC warns 4th-qtr net will be far below forecasts SAN FRANCISCO, Nov 28 (Reuters) - ChipPAC, a provider of test and packaging services for semiconductor makers, on Tuesday warned that fourth-quarter net income would be far below forecasts, citing weakness in the wireless and computing markets as well as inventory adjustments by customers. The Santa Clara, Calif.-based company said that for the period ended Dec. 31, it expects sales of about $128 million and earnings per share of 3 cents. The company did not provide a dollar amount for the quarterly profits. The consensus forecast for ChipPAC's fourth-quarter earnings was 18 cents a share, according to First Call/Thomson Financial. ChipPAC (NasdaqNM:CHPC - news) stock fell 1/4, or 3.3 percent, to $7-3/8 on the Nasdaq and has fallen from a year high of $19-1/2. ChipPAC is the latest semiconductor-related company to see its shares tumble amid concerns that the notoriously boom and bust chip industry is slowing sooner than expected. The Philadelphia Semiconductor Index tumbled 8 percent on Tuesday, or 50.96, to 577.12. The index has plunged 58 percent since its record high reached on March 14 of this year. ``The gains (seen in other parts of the industry) have not been enough to fully offset the short-term weakness we are seeing in the wireless and computing end-markets when combined with end of the year inventory adjustments by several of our customers,'' said Dennis McKenna, president and chief executive of ChipPAC in a statement. Separately, ChipPAC said it had acquired VIKO Test Labs, a unit of VIKO Technology Inc. for undisclosed cash and stock. McKenna said in a separate statement that buying the Silicon Valley unit would help ChipPAC allow customers to produce complex prototype chips more quickly. VIKO Test Labs is ChipPAC's second acquisition since completing its leveraged buyout from Hyundai in July 1999. Its first purchase was Intersil's factory in Kuala Lumpur, Malaysia.