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To: Boplicity who wrote (944)	5/23/2001 2:34:51 AM
From: Sully-	Read Replies (1) \| Respond to of 13815

Greg, Actually your POV on this is not too far from mine. I don't think that lower than expected earnings fully is baked into share prices though. This B2B was lower than expected......... and it was for April......... It's the worst decline in a decade........... <<"The severity and depth of this industry correction is unprecedented," said Stanley T. Myers, president and CEO of SEMI. "The book-to-bill ratio is the lowest that the industry has posted in the past decade and reflects the sharp order decline in April 2001. Cancellations of previously reported orders for semiconductor manufacturing equipment were a significant contributor to the monthly bookings decline as worldwide chip manufactures make adjustments to bring capacity and inventory in line with demand.">> IMO, some of the SEMI's are going to guide earnings estimates downward due to the severity of this decline.......... overcapacity will put pressure on chip prices........ which will put pressure on profit margins........ perhaps some will meet current lowered estimates........... and still others will do just fine like KLAK perhaps many will have their second or third consecutive quarter of YOY earnings declines......... that is not conducive to increasing stock prices without achieving extremely high P/E's. I'm not saying that there will be lower lows in the SEMI's. I am concerned that they will correct from current levels & base for a spell before seriously going up though. BWDIK? Ö¿Ö