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

To: Gottfried who wrote (5175)	8/29/2002 5:46:44 PM
From: Donald Wennerstrom	Read Replies (3) \| Respond to of 95487

Here is Briefing.com's assessment of the NVLS mid-quarter report. <<Novellus Systems (NVLS) 24.29 +0.11: This semi equipment giant is down 2% after the close as the company provided an update on how Q3 is going. The stock is holding up despite a fairly large warning. The company now sees Q3 revenue and EPS of $230 mln and breakeven vs Multex consensus of $250 mln and $0.10. Perhaps more troubling were its comments that NVLS has seen significant push-outs from two key customers in just the past three weeks. Bookings guidance was lowered to $220 mln from its July guidance of $250 and it could be as low as $200 mln. Since the stock is holding up, it's clear that a warning was being priced in given Applied Materials' (AMAT 13.44 +0.19) recent cautious comments. Bottom line, there's not a whole lot of new information here. It is good to hear that corporate spending is seeing a slight uptick in Q3, however, it's being more than offset by slowing consumer spending. Briefing.com continues to be cautious on the semi equipment sector and we expect the news to remain negative in the near future. We do not view the group as an attractive bottom fishing opportunity at current levels. Of note, Intel (INTC 17.14 +0.30) has its mid-quarter update Sep 5. Some are expecting a reduction in its cap-ex budget for 2003 which would be bad news for the equipment makers. Not much movement in other semi equipment stocks 4pm close: AMAT -0.10, KLAC -0.52. -- Robert J. Reid, Briefing.com>>