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.

Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: techanalyst1 who wrote (11773)	5/28/2002 7:51:43 PM
From: stockman_scott	Respond to of 57684

Briefing Wrap~up on NVLS call... Novellus Systems (NVLS) 46.67 +0.49: This chip equipment giant is trading down $1 after the bell despite upping Q2 guidance. The company now expects revenue and EPS of $220 mln and $0.08 vs Multex consensus estimates of $221 mln and $0.07. Also, the company sees orders coming in at $275 mln, much higher than the $250 mln forecast provided on April 15. While this is good news, apparently traders were looking for even more bullish comments. Consider that techs were weak today, but the semi equipment sector posted nice gains heading into this call....Ever since Applied Materials (AMAT) reported a 50% sequential increase in orders earlier this month, the debate has raged over whether the semi equipment sector is in recovery mode. There are strong opinions on both sides. On Friday, Goldman Sachs downgraded the sector and some individual names. However, a few firms have come to the sector's defense. Our sense is that it's tough to argue against a recovery, but we are not all that positive on the group as much of the good news has already been priced into the shares. Another concern is that a rebound in end demand is less clear. The semi equipment companies have been upping guidance, but it has not really been an end market demand push. Foundry customers have accounted for most of the increases in orders recently, so as they digest their capacity additions, there has to be follow-through demand in order to really pull the group out of the slump. Bottom line, this call was positive, but that was expected. Most analysts expected the company to guide higher which is exactly what happened. At a forward p/e of 30x, NVLS is not exactly a steal in the mid-40s. Reaction of other semi equipment names: AMAT -0.16, KLAC -0.38, LRCX -0.48. -- Robert J. Reid, Briefing.com