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

To: Gottfried who wrote (3385)	6/3/2002 5:37:42 PM
From: Return to Sender	Read Replies (1) \| Respond to of 95536

From Briefing.com: Nasdaq slumped to its lowest level since 5/7/02, falling 53 points, or 3.3%... Losses were triggered by ongoing tensions between India and Pakistan; bearish comments on software sector from Lehman and UBS; another debt downgrade to AT&T - this time from Fitch; sharp declines in the influential semiconductor index (SOX); and a nearly 6% drop in the battered biotech index (BTK)... Based on the lousy market action and the unnerving geo-political scene, there's just no reason to think that buyers will step back in at these levels... Consequently, traders can look for index to explore support in the 1480 area in the days to come. While the technical tone of the market is bleak and the international scene frightening, there is some good news -- the economic recovery continues to gain momentum... Yesterday's ISM and Construction Spending data exceeded consensus estimates and provided further evidence that the nascent recovery has legs... Unfortunately, the good economic news is getting lost amid all the negative corporate and political news... Nevertheless, the foundation for a profits and market recovery is being laid... If the data continue to exhibit strength over the next several weeks, maybe, just maybe, investors will begin to accentuate the positive for a change... Until then, fasten your seat belts, it's going to be a bumpy ride. Robert Walberg, Briefing.com 4:58PM Flextronics warns for June and Sept. qtrs (FLEX) 12.32 -0.91: -- Update -- During mid-quarter update, says it expects EPS of $0.05-0.08, before charges, in fiscal Q1 (Jun) and revenue of $3.0 bln; Multex consensus estimates are $0.11 and $3.17 bln, respectively.... for fiscal Q2 (Sept), expects EPS of $0.07-0.10 and revenue of $3.2 bln; consensus estimates are $0.12 and $3.28 bln... notes it will be taking a $150 mln restructuring charge in June qtr... FLEX -0.72 at 11.60 4:40PM Flextronics says end of downturn is near (FLEX) 12.32 -0.91: -- Update -- During mid-quarter update, says it is seeing clear signs in many parts of its business that end of downturn is near and it is planning for an upturn in those businesses by the end of the year... separately, says its data and telecom businesses have continued to weaken versus its expectations coming into June quarter, but notes end market demand has been more robust in computer and consumer businesses... FLEX -0.62 at 11.70 11:23AM Broadcom Intraday (BRCM) 22.75 +0.20: -- Technical -- Stock demonstrating relative strength, trading in positive ground despite broad market weakness. Look for initial resistance at 22.80 followed by secondary overhead at 23.00 -- on a break above those two points, stock has little subsequent overhead until 23.50. Note that the favorableintraday tone deteriorates on a break below very near-term support at 22.50. 10:48AM Semiconductor Sector Intraday : -- Technical -- SOX has edged towards its May 7th low of 455. On a break lower, supportive areas going back to October 2001 include potential support at 447/451 followed by another notable area at 424/428. The intraday tone would improve if the index could reclaim territory above very near-term resistance at 460/465. 1:34PM Cabot Micro (CCMP) 47.87 -0.91: Stock trading down about 2% today, despite a Buckingham Research initiation with a Strong Buy rating and price target of $63. Firm notes that CCMP has an 80% share of chemical mechanical planarization slurries used in semiconductor production, and this is one of the fastest growing areas because of the trend toward shrinking feature-sizes, increasing wafer diameters and adoption of copper damascene technology. Company is debt free, with $1.50/share of cash. Based on est. 2003 EPS, CCMP is expected to generate cash flow per share over $2.00 and a return on equity near 30%. Products new in the past 3 years comprise about 50% of sales; copper slurries were 19% of revenue in last quarter; slurries for data storage were 9%. Conexant (CNXT) 6.75 -0.40: Announces that its Ethernet asymmetric digital subscriber line modems have been selected for use in the Korea Telecom network. Transmeta Crusoe (TMTA) 2.57 +0.20: Hewlett-Packard (HPQ) announces plans to use Transmet'a 1GHz Crusoe TM5800 processors to power HP's forthcoming Compaq Evo Tablet PC. Xilinx (XLNX) 31.01 -4.25: According to their June update (just posted to co website), XLNX expects sequential rev growth of about 8% for the June qtr, which is at the high end of the 6-8% guidance given on April 18; also, June qtr shipments are expected to be non-linear, resulting in days sales outstanding of about 50 days (flat with last qtr), and 300mm transition is on track with initial production this qtr... Merrill is defending XLNX amidst chatter that higher than expected delinquent payments on new technologies caused a higher DSO's number and led to a more back-end loaded qtr; firm reiterates Near-Term Buy rating and says that the qtr is back-end loaded and DSO's at 50 days due to stronger than expected demand for Virtex-II and Virtex-E products, which is causing longer-than-expected lead times; also, believes transition to 300mm wafers will help XLNX's gross margins get back above 60% within a couple of qtrs. KLA-Tencor (KLAC) 49.45 -2.68: Stock testing major support in the 50-49 area... Decisive break would leave stock vulnerable to test of 40 area. finance.yahoo.com^SOXX+^IXIC+^VIX+&d=t A bumpy ride indeed! RtS