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To: drsvelte who wrote (14132)	12/11/2000 1:36:42 PM
From: SJS	Read Replies (2) \| Respond to of 14427

For consideration. Note last sentence......: ________ Anadigics (ANAD) 19 13/16: And the beat goes on....This supplier of wireless and broadband communications chips is trading just under $15 in the pre-market after it joined a growing number of chip companies to warn for the current quarter. The company cautioned that Q4 revenue and EPS will be lower than prior guidance. The company blamed the weakness on continuing changes in the communications markets, further inventory corrections at major customers, and a slower than expected volume production ramp of the company's newly introduced HBT PA products. Estimates for Q4 are now expected to be $31 mln in revenue and a loss of $0.03 per share as current consensus is breakeven. Even more scary is that 2001 estimates were slashed. Q1 revenue to $34 mln on a loss per share $0.03. The Street had pegged Q1 EPS of $0.08 profit. It's gets really ugly for the full year 2001 as EPS was sliced by 75% to $0.20 from $0.80....A miss at Anadigics is not surprising given Motorola's (MOT) warning last week as ANAD is a supplier to MOT. Also this morning, the number one ranked analyst in the space who has a lot of credibility cut his outlook. Morgan Stanley's Mark Edelstone lowered his 2001 revenue growth outlook for the chip group to a range of 15%-18% from 25%. What's troubling is that he also believes about half of the 31 companies in his chip universe will miss estimates. The lesson here is to steer clear particularly of communications chip stocks. Stocks whose end products are mobile phones, cable modems, cable set-top-boxes should be avoided. Names that would take courage to hold over the next few weeks are Alpha Industries (AHAA 51 13/16), Analog Devices (ADI 59 1/2), Linear Tech (LLTC 55 1/16) and Maxim (MXIM 59 1/16) as they are candidates to warn.