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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (32801)	6/15/2001 2:34:21 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68981

14:24 ET ****** Veeco Instruments (VECO) 40.85 -1.06: We'll take good news where we can find it -- even if it requires framing an "earnings warning" as a positive event... Announcement last night by semiconductor equipment maker Veeco that Q2 orders will come in between $80-$90 mln, which is below previous guidance of $100-$110 mln, is some of the most compelling news heard out of the sector in a couple of months. In the current environment of serial earnings warnings from companies in the semiconductor, telecom and networking sectors, investor have simply come to expect more of the same. In fact, the surprise component of a negative pre-announcement is no longer the warning itself, rather the size of the reduction in expectations. By removing some of the near-term uncertainty, Veeco has edged back into the tech sector passing lane. At a time when no segment of the high tech market seems secure, large-cap semiconductor equipment companies are beginning to present themselves as a safe haven, with at least one other sector name issuing generally positive guidance this week... The 12.5% decline suffered on the SOX since last Thursday argues for near-term technical bounce on the Index. The semiconductor equipment contingent of the SOX is almost certain to lead the recovery... Would be monitoring the SOX (608) over the next several days for a test of support in the 580 area. Ability to hold here will ignite short-term interest in semiconductor equipment leaders AMAT, NVLS, KLAC. But we would expect growing confidence in VECO's ability to come in within a respectable distance of its Q2 targets to allow this name to outperform its peers. -- Damon Southward, Briefing.com