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

To: Return to Sender who wrote (3210)	5/22/2002 5:16:31 PM
From: Return to Sender	Read Replies (1) \| Respond to of 95541

From Briefing.com: 4:42PM Semi equipment stocks lower on Intel capex talk : Street sources telling us that Morgan Stanley's Mark Edelstone did comment that Intel's capital spending could be flat to down 15% in 2003 due to capital efficiencies resulting from the transition to 300mm from 200mm; he mentions that Intel hinted at this at its April 25 analyst meeting (Lehman's Dan Niles noted the possible 2003 capex implications at that time). With this forecast in mind, Edelstone worries about high valuations in the semi equipment sector, poor end market visibility, and sector rotation risk. Semi equipment names down after hours: NVLS -1.07, KLAC -0.73, AMAT -0.16. 4:35PMCredence beats by a penny (CMOS) 20.09 -0.23: Reports Q2 loss of $0.32, $0.01 better than the Multex consensus; revs were $38.7 mln, vs consensus of $35.6 mln. Co reports a book-to-bill over 1.0 for the first time in 5 qtrs. 4:28PM Microchip to acquire PowerSmart, reiterates guidance (MCHP) 31.83 +0.27: Announces that it will acquire PowerSmart, a privately held fabless semi co, for about $54 mln in cash; PowerSmart is expected to contribute about $7-$8 mln in rev to MCHP in FY03 and about $14-$16 mln in FY04. Also, co says it is "tracking extremely well" towards its sales and EPS guidance provided on April 25. 4:28PM NVDA falls $0.40 in after hours, after inital $0.70 pop : 4:22PM NVIDIA beats by a penny (NVDA) 38.05 +1.48: Reports Q1 net of $0.47 a share, $0.01 better than the Multex consensus and within the range of upward guidance of $0.45-$0.48 provided April 29. Revenues rose 142% to $582.9 mln vs consensus of $575.12 mln. 3:24PM Sun Microsystems advances into Mid-Qtr update (SUNW) 7.26 +0.38: Stock ticking up ahead of Mid-Qtr update call to be held tomorrow evening. Thomas Weisel Partners is reiterating its Buy rating on stock ahead of the call; firm expects business to be on track, with no major changes in current guidance for the JunQ. TWP does not expect guidance to be given for fiscal 2003. 2:23PM Intel capex rumors hitting semi equipment names (INTC) 29.06 -0.01: Hearing trading floor rumors that an analyst at a tier 1 brokerage firm will cut his Intel capital spending forecast tomorrow, perhaps by a billion to $4.5 bln. If this does occur, such a call could hit semi equipment names such as Applied Materials (AMAT 25.75 -0.59) and Novellus (NVLS 47.60 -1.22), both of which have come under pressure in recent action. 11:03AM Qualcomm rumors of lower forecasts for Chinese users (QCOM) 31.49 -1.13: -- Update -- We are hearing Street talk coming out of the co's analyst meeting that former president Rich Sulpizio will run QCOM China as interim president, and that the co now expects 3-4 mln users in China this year, down from their previous projection of 4 mln. 10:30AM Nasdaq Composite Intraday : -- Technical -- Index rallied as much as 24 points off the intraday low after holding the bottom of the gap at 1652 created on May 14. From current levels, look for initial resistance at 1676/1680 followed by more significant overhead at 1695. To the downside, watch for initial support at 1666 followed by additional support points at 1660 and 1652. 10:20AM NVIDIA: positive comments by JP Morgan (NVDA) 38.05 +1.48: -- Update -- We are hearing that JP Morgan just put out some positive comments on NVDA ahead of their Q1 earnings release tonight; we're told that traders generally feel that NVDA's numbers will be good, but most of the focus tonight will be on guidance. 9:30AM Plexus Corp should retain Unisphere biz with Juniper (PLXS) 26.53: SG Cowen says that channel checks indicate that JNPR does not have any near-term plans to alter the Unisphere/PLXS relationship (Unisphere was a 10% customer) in favor of JNPR's current ECMs SLR and CLS. 2:55PM Oracle (ORCL) 8.48 -0.37: Bank of America Secs attended this week's Oracle Applications User Group Conference. Attendance, down 40% from last year, is an indicator of ongoing weakness for ORCL and sector, which has plumeted about 40% since March. Firm's conversations with ORCL's partners and customers continue to reflect cautious IT spending environment with most activity centered around product upgrades, not new systems. Firm believes ORCL's Q4Y02 and Q1Y03 results will likely come in $0.01-0.02 below consensus; lowers Q4Y02 EPS to $0.11 from $0.13 and Y03 EPS to $0.41 from $0.45; says fundamentals are being restrained by weak IT spending environment, competition, less than perfect execution, and ongoing shift away from year-end based sales compensation. Firm says ORCL shares seem to be fully discounting weaker Q4 and Q1 results, as well as database deal with State of CA from last year (which may be renegotiated). Firm recommends buying on any further weakness in shares. finance.yahoo.com^SOXX+^IXIC+^VIX&d=t RtS