Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (47959)	6/14/2001 9:07:38 PM
From: Proud_Infidel	Respond to of 70976

STMicro warns of 17-19% sequential drop in Q2 revenues Orders cancellations and push-outs continue to drive down sales, says company Semiconductor Business News (06/14/01 10:40 a.m. EST) GENEVA-- STMicroelectronics today joined other chip makers in cutting its second-quarter forecast, warning that customers are still postponing orders. The European chip maker said it now expects Q2 revenues to be in a range of $1.55-to-$1.60 billion, below a previous estimate of $1.65-to-$1.8 billion. The revised forecast means the company's revenues will be sequentially drop 17-to-19% from $1.92 billion in the first quarter. STMicroelectronics said the decline reflects weakness in telecommunications and computer peripheral IC applications. The lower revenues will result in a drop in gross margin to about 38%, due to lower-than-anticipated utilization rates of the company's 6-inch wafer fabs, according to ST. However, the European chip company said it has maintained utilization rates of about 85% at its five leading-edge 8-inch (200-mm) wafer fabs. No information was released on the 6-inch fab utilization rate. ST said memory product revenues in Q2 will be slightly above sales in the same quarter last year but sequentially below Q1 due to lower-than-expected demand and pricing pressures. Revenues for smart-card chips will be lower both sequentially and on a year-to-year basis, said ST. The company said digital consumer product revenues will be flat with Q1 but down compared to sales in the second quarter of 2000. The company said it continues cost-control initiatives in the downturn, and it expects to release a new forecast for third-quarter revenues when it releases Q2 results next month. Two weeks ago, ST announced it had cut its capital spending plans for 2001 to $1.5 billion from a previous budget of $1.9 billion, and the closure of a wafer fab in Ottawa (see May 31 story).

To: Proud_Infidel who wrote (47959)	6/14/2001 10:12:10 PM
From: robert b furman	Read Replies (2) \| Respond to of 70976

Hi Brian, That is such a good question,the only correct answer would require hindsight. Lord knows, I don't have that.gggg Twelve has always been a magic buy number for me - it has in my experience often been a great support level for the stopping point for vicious shakeouts. Cohu twice(now pre-split) SBSE and almost Oracle(13.15). With a mgt. shakeout yesterday and an earnings warning coupled with an inventory write off of 225-250 million today(after hours), that pretty well sets up tomorrow for a nimble" buy the dip" wild a$$ guess this is a bottom. Probably do it in thirds and watch the 5 and 10 minute moving average trend lines. If the 5 is steeply going down wait for the 10 to catch up and take a position.But with out a doubt, I'll have a lowball buy day order in at the open - just guessing -but I'm thinking 11.35. Any strategies floating in your dreams??ggg Bob