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

To: Return to Sender who wrote (4932)	8/16/2002 12:27:34 PM
From: Return to Sender	Respond to of 95471

From Briefing.com: 12:06PM Extreme Networks (EXTR) 9.95 +0.66: This maker of network gear was once a high flyer during the Internet boom days and has come back to earth. However, unlike many names in the space it has been able to stay around the double digit mark. The stock is getting some interest today as Needham upgrades it to Strong Buy from Buy based on valuation and the belief that the company will participate in renewed growth later this year in the networking industry. Needham has a price target of $14... Extreme is worthy of credit for being able to avoid the low single digit dungeon of many in the networking space. Unlike many of its brethren, Extreme has always focused on the enterprise market rather than the carriers/service provider market. Unless you have been living on another planet, you know that the carriers have slashed capital spending plans. It has not been a walk in the park for the enterprise business either as IT budgets have been constrained. However, the cuts have not been as deep and there is broad consensus that the enterprise market will rebound much more quickly the carrier market. Also, Extreme has been executing well of late as it has now reported three consecutive quarters of sequential revenue growth. Its competitively priced product portfolio has helped the company become the leading alternative to Cisco for Ethernet switches. The key to Extreme's growth over the coming quarters and years will be its ability to compete in the new 10-gig Ethernet world. As customers shift to 10-gig, Extreme will need to be aggressive. Extreme is not the first out of the gate for 10-gig, but the race should last years. If it can be as successful as it has been in the previous generation of products, Extreme should be ok. Extreme is a profitable company and has a good balance sheet. As you can see in the chart, the stock has been able to build a base in the 9/10 area. We would not hold it much lower, but Extreme will be a survivor and there are signs its business is slowly improving. -- Robert J. Reid, Briefing.com 10:32AM Nasdaq Composite Intraday : -- Technical -- Confined action continues to dominate with the index locked between 1325/1322 on the downside and 1346/1350 on the upside. Despite the limited action, the consolidation just slightly below the latest high is a positive. Will be watching 1334 ahead of the range floor for an indication that the index remains positioned for an upside breakout attempt. Success points to next resistances at 1354/1356, 1370/1373 and 1378 (50 day sma). 9:54AM NVIDIA upped to Sector Perform from Underperform at RBC; target $15 (NVDA) 9.94 -0.35: 9:50AM Michigan sentiment slightly below consensus : The Michigan sentiment index fell to 87.9 in early August from 88.1 in July; this was slightly below the 89.0 consensus but did represent an expected stabilization in the index after two months of sharp declines tied to stock market woes. As noted earlier, this preliminary reading is based on a survey of just 250, so today's nearly flat reading shouldn't be over-analyzed. The report has had no market impact. 9:14AM Extreme Networks upgraded at Needham (EXTR) 9.29: Needham upgrades to STRONG BUY from Buy based on valuation and the belief that the co will participate in renewed growth later this year in the networking industry; price target is $14. 9:05AM AOL Time Warner faces expanded SEC probe-- FT (AOL) 11.86: The Financial Times reports that the SEC has expanded its inquiry into accounting practices at AOL, and is now investigating three new transactions totalling $49 mln that took place after the merger (co disclosed the questionable transactions on Aug 14); some SEC and Dept of Justice investigators were sceptical this would be the last accounting announcement from the co. 8:04AM Intel estimates cut at Morgan Stanley (INTC) 18.65: Morgan Stanley cuts 2002-03 ests for INTC, saying they now believe the PC market has entered into a prolonged period of moderating growth; cuts 2002 ests to $0.55 from $0.59 and 2003 to $0.80 from $0.95 (both in line with consensus), lowers their 5-year earnings growth forecast to 17% from 20%, and cuts price target to $27 from $38. 10:18AM Sector Watch: Semiconductor : Group has played a solid role in keeping the Nasdaq losses limited in scope despite the weakness note in Intel (INTC -1.6%) following estimate/price target cuts (see 08:04 comment). Providing upside leadership this morning are: TXN +3.6%, MXIM +2.5%, LLTC +3.2% and KLAC +2%. SOX index (332) has established a fractional new recovery high today with next resistances at 335/337 followed by 343/345. Will be watching to see if able to sustain break of support at 330/327 (Mar/Jul trendline, 20 day ema). finance.yahoo.com^SOXX+ALTR+AMAT+AMD+AOL+BRCM+EXTR+INTC+KLAC+LLTC+LSCC+LSI+MOT+MU+MXIM+NSM+NVDA+NVLS+TER+TXN+XLNX+^IXIC+^VIX&d=t RtS