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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Peter V who wrote (25642)	1/16/2002 8:55:11 AM
From: Robert Douglas	Respond to of 25960

so how does Intel's earnings debacle affect CYMI? Will it fall in sympathy? Is there a direct link between the semi equipment industry and Intel sales? It's more the announced level of capital spending that will effect the semi-equip companies. There's no doubt this will impact CYMI too in the short run, but the long run story of Cymer is one of progression to smaller geometries and should suffer less than those dependant upon expansion of capacity.

To: Peter V who wrote (25642)	1/16/2002 1:56:41 PM
From: ScotMcI	Read Replies (1) \| Respond to of 25960

The early reaction was decidedly negative; the stock was off nearly $3 early on. Now it's off just $1. Stories like the following might be the reason: Analysts Call Intel Outlook 'Conservative,' Up Outlook NEW YORK -(Dow Jones)- The reaction amongst analysts to Intel Corp.'s (INTC) fourth-quarter earnings results is noticeably less negative than that of investors who sold shares starting late Tuesday. While many investors were disappointed with the company's first quarter outlook, analysts tended to interpret the outlook as "conservative" and raised their 2002 estimates. After Tuesday's closing bell, Intel posted a surprise gain in its fourth- quarter profit margin and handily beat earnings expectations. But the chip maker also projected that first-quarter revenue will show a normal seasonal drop, coming in flat to down as much as 8.6%. For the fourth quarter, Intel said its gross profit margin was 51% of sales - better than its December forecast of 47% - and predicted that its profit margin would remain at 51% for 2002. It also said it would cut capital expenditures by 25% to $5.5 billion. The spending decrease was widely anticipated, but the figure came in below the consensus of $6.0 billion to $6.5 billion. Credit Suisse First Boston upgraded the chip maker to buy from hold because of the company's capital spending and headcount cuts. Analyst Charlie Glavin believes the cuts "better position" Intel for 2003. Intel's lowered capital expenses of $5.5 billion spells lower depreciation and should help boost margins, he said in his note Wednesday. A research note from Prudential Securities Inc. downplayed the lowered capital spending. The reduction is "benign" given the company's aggressive spending during the downturn, said analyst Hans Mosesmann. Indeed, Intel ramped up spending by 9% in 2001. The analyst raised his 2002 earnings estimate to 66 cents from 64 cents and maintained his 2003 estimate of $1.10. Robertson Stephens also raised its 2002 estimates to 66 cents from 54 cents a share, although analyst Eric Rothdeutsch was somewhat more cautious because of the stock's high valuation and limited gross-margin expansion opportunity in 2002. He maintained a market perform rating. Merrill Lynch & Co.'s Joseph Osha kept his rating at buy and said he believes Intel has a good chance of beating its conservative outlook. "We note that the company already has bookings in place to support revenue at the midpoint of its $6.4 billion to $7 billion target," he wrote in his note Wednesday. He also anticipates Intel will achieve a gross margin of 52% for 2002. While he believes the long-term picture is still unclear, Osha believes " marketshare gains and rising gross margin should underpin solid stock price performance of the intermediate term." He kept his 2002 earnings estimate at 70 cents a share has a price target on the stock of $40. UBS Warburg said in a note Wednesday that Intel's lower first-quarter outlook is reflects normal season patterns and raised upped its estimate for 2002 by a penny, to 71 cents a share. Bank of America, Thomas Weisel and Salomon Smith Barney are amongst the other firms to raise 2002 and 2003 estimates. Intel shares recently traded at $34.25, down 1.2%, or 43 cents on volume of 32.1 million compared with average daily volume of 50.1 million.