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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Magnatizer who wrote (22474)	11/29/2000 9:36:35 AM
From: JoeinIowa	Respond to of 29382

I am reading more articles about chip companies and their support companies(test equipment and packaging) that are having trouble. ChipPac warning hits sector early By Emily Church, CBS.MarketWatch.com Last Update: 9:07 AM ET Nov 29, 2000 Newswatch Latest Headlines Get Alerted NEW YORK (CBS.MW) - A late warning from ChipPac put the semiconductor sector on an uneasy footing early Wednesday even as shares of communications chip maker Broadcom rebounded. Shares of ChipPac (CHPC: news, msgs) tumbled 63 percent in pre-market trading on Instinet to $2.34 after the company warned of a fourth quarter profits shortfall. See Indications. The company packages semiconductors. The company expects net income of 3 cents a share. Analysts surveyed by First Call expected earnings of 18 cents a share, on average. According to a company statement, the ChipPac is experiencing short-term weakness in wireless and computing end markets. Also, year-end customer inventory adjustments will hurt the company's financials. The company expects annual fiscal revenue growth of 30 percent. Chip stocks have been selling off this week. The benchmark 15-stock Philadelphia Semiconductor Index ($SOX: news, msgs) ended at a new low for the year on Tuesday. Shares of Broadcom (BRCM: news, msgs) however, turned higher early Wednesday, rising 5.8 percent to $90 in on the Island ECN and regrouping after a downturn on its announcement of plans to buy Israel-based VisionTech. The VisionTech deal got an early boost from a couple of analysts Wednesday. Mark Edelstone at Morgan Stanley Dean Witter upgraded the stock to a "strong buy" from an "outperform" to reflect the "recent sell-off, strength of business conditions and current valuation parameters." Still, WR Hambrecht's Jim Liang reiterated his "buy" rating but does not see any near-term catalyst for the shares, as signs of a coming inventory correction are increasing.