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

To: Sarmad Y. Hermiz who wrote (6653)	11/3/2002 2:39:58 PM
From: Alastair McIntosh	Read Replies (1) \| Respond to of 95530

Sarmad, margins in the SCE sector will stay under pressure until chip manufacturers equipment utilization rates rise enough to trigger capacity buys. I don't see this happening until after 2004. As I posted before 300mm tools give additional capacity for relatively lower capital requirements. Also, the lower cash flows resulting from ever lower chip prices will pressure capital spending. On the other hand, the dominant companies will continue to invest in new technologies for competitive reasons. I also believe that stock prices in general will trade in a sideways range for a few years. Picking tops and bottoms of the range will be key rather than buy and hold.