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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (168)	11/30/2000 9:41:13 PM
From: scott_jiminez	Read Replies (1) \| Respond to of 95823

Incidentally, even though KLIC has had the most severe earnings estimate reductions, other stocks have taken similar percentage hits in stock price reduction over the same period. That was indeed the thrust of my post: even though Klic's earning estimates have been cut by 50%+, and the sector earnings estimates have remained unchanged, the performance of the sector this year (based on decline from 52-week high) roughly matches Klic's performance. So I'll repeat what I said in my earlier post: this means that 1. the bad news is factored into Klic and not other SEM stocks or 2. Klic's estimates have been factored into all SEM stocks, or 3. the estimates are completely irrelevant (NOT). I would anticipate we'll see A TON of estimate reductions for the entire sector (except Klic) in the near future. The question remains if the individual stocks will react negatively to the news or, alternatively, they've already factored in the news vis-a-vis Klic. The Briefing.com article I posted on the Klic thread today reinforces the idea that Klic may be one of the few stocks in the sector where the idea of 'bad news factored in' is based on estimate reduction reality. It will be more of a matter of prayer with other SEM stocks that they will hold up when the inevitable estimate reductions become manifest.