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

To: Donald Wennerstrom who wrote (885)	7/30/2001 9:39:19 AM
From: Return to Sender	Read Replies (1) \| Respond to of 95456

From Briefing.com: 8:52AM DRW on Semis : Dain Rauscher Wessels remains Neutral on semiconductor industry, believes excess capacity and associated pricing pressure could trigger a secondary supply shock in 2003; anticipates that sustainable revenue growth will not begin until well into 2002.

To: Donald Wennerstrom who wrote (885)	8/2/2001 8:36:48 PM
From: Return to Sender	Read Replies (2) \| Respond to of 95456

As Chip Sales Shrink, Optimism Grows By Paul Bonanos Aug 02 2001 04:56 PM PDT thestandard.com The Semiconductor Industry of America says June sales were down 33% from last year, but predicts a rebound by year's end. Chip stocks rise appreciatively. Despite a Semiconductor Industry of America report suggesting continuing struggles for the sector, chip companies traded higher Thursday, on the strength of analyst upgrades and optimistic forecasts. The SIA's report indicates that June chip sales were off more than 30 percent from a year ago, and came in 8.8 percent lower than May sales, based on three-month moving averages. The industry's year-over-year decline was the highest yet during the current economic downturn, falling further from May's 20 percent decline over the previous year. The report uses three-month moving averages to smooth out regular fluctuations in chip-buying cycles at the end of each quarter. Actual June sales rose 28.1 percent from May sales but were down 33 percent since June 2000, the same as May's decline from the previous year. Although the forecasts were less than optimistic, some chip companies have seen their stocks rise of late. Intel shares, for example, rose 4.4 percent Thursday after upbeat remarks from CEO Craig Barrett, who reportedly told a Malaysian audience that he anticipated a recovery in the sector by next year. Some analysts agreed with Barrett's projections, as Merrill Lynch upgraded 11 chip stocks Tuesday night, particularly those in the wireless, foundry and standard-product analog subsectors. The firm's accompanying note read, "[We] believe that the worst of the downturn is now behind us." SIA President George Scalise also predicts an eventual rebound for the chip sector by the end of 2001. "Based on the inventory reduction that has occurred in the first half of 2001 and the further reductions projected for the third quarter," he said, "we believe the industry will return to sequential growth in the fourth quarter of this year." The SIA released a report in June indicating that the worldwide semiconductor market would experience negative growth during 2001, shrinking by 14 percent before growing just more than 20 percent in 2002. If that comes to pass, 2001 will be the first down year for semiconductors since 1996, when the market dwindled by 9 percent. The semiconductor market tends to grow in cycles of about four years, affected by various outside economic factors. In Thursday trading, the Philadelphia Semiconductor Index rose 3.2 percent after a 5-percent gain Wednesday. All 13 of the index's components gained ground, led by fabrication-component makers KLA-Tencor and Applied Materials.