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Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: SirRealist who wrote (62996)	7/28/2002 7:09:02 PM
From: t2	Respond to of 208838

"We are perilously close to having a liquidity crisis which would dramatically affect the equipment industry," said CEO Rick Hill of Novellus Systems (NVLS: news, chart, profile), which makes equipment that deposit materials on silicon. His main concerns revolve around his customers, the chipmakers, and his customers' customers, manufacturers that make products like stereos or cell phones or computers. He said many are not as well positioned with cash as his own firm, which has $1.8 billion. While this does not diminish his belief in the long-term growth of his industry, he said that, "We are in a very tenuous situation." Still reminds of the way the optical bubble burst..capex spending cuts by the telcos...and that started the spiral downward. Actually, it started with just concerns of possible capex cuts. The difference this time may be that this would something of a double dip...as there was a lot more hope in semis than the optical sector because they were not directly as exposed to telco troubles. I think JDSU had about 1 billion in cash in 2000. So having cash is not good enough. Hoping for a bounce in the sector..should be a great sector to short in any rally.