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

To: Big Bucks who wrote (9745)	5/9/2003 6:26:34 PM
From: Return to Sender	Respond to of 95637

Semiconductors . . . Legg Mason reits Sell rating on Silicon Labs following PC-Tel's announcement that it will sell its soft modem business to Conexent. Although firm doesn't believe the transaction will be an immediate negative for the June quarter, the sale adds an element of uncertainty to a wireless and PC environment that is becoming increasingly volatile given the continuing impact of SARS on Asian consumer spending. Intel President Paul Otellini sees strong demand in the key Chinese market and expects a recovery in the semiconductor industry this year. According to the German financial daily Handelsblatt, Otellini told Handelsblatt in an interview that Intel's new wireless chip Centrino had met the company's full expectations and that Chinese demand remained strong. NVIDIA guidance was more robust than expected according to Friedman Billings Ramsey. The firm says the real surprise to company's report was 2nd quarter revenue guidance of 12-18% growth versus firm's expectations of flat growth. The firm raised 2004 estimate to $0.69 from $0.59 and 2005 to $0.85 from $0.75. Increases price target to $17 from $14. DigiTimes reported that Taiwanese digital camera ODMs are seeing strong revenue growth. According to CIPA, Japanese OEMs, with about 90% global share shipped over 7 million units in 1st quarter, suggesting that the digital camera market is on a pace to exceed our 28 million unit estimate for 2003. Risks remain the rate of flash price declines and sensitivity of market to weakness in consumer spending. Boxmakers . . . Richard Chu at SG Cowen believes the shares of Hewlett-Packard remain "undervalued," and reiterated his "strong buy" rating. Chu thinks the stock price does not accurately reflect the value of the company's core imaging and printing business, which he believes is worth $20 a share on its own. Chu also believes there are prospects for improved returns in its computing and services businesses, which have benefited from cost reductions and the movement towards standards-based technologies. Windows Server 2003 and Madison should begin to elevate credibility and strategy. Has leveraged EPS upside on moderate top line outlook. We are looking for –2% revs this year and +8% in 2004. Dell’s entry into printers will take a long time to reach critical mass. Don't expect impact on HPQ margins. Gateway CEO reiterated guidance for the Quarter and rest of the year. 2nd quarter revenue of $798 million and ($.28) vs. ($28) Street ($.19) for 3rd quarter and ($.09) for 4th quarter. Said its cost-reduction programs are on track and its store closings are complete. The company also announced it will begin offering servers based on Linux OS. GTW's strategy in recent Quarter’s affirms it is backing away from direct confrontation with DELL in consumer/SOHO arenas and shifting value proposition to non-PC consumer electronics leveraged by a PC portal; we believe that DELL has recently maintained very aggressive pricing in consumer direct channels. 2020insight.com As I think you know I do agree with you. If however there is enough of a pick up in demand then the natural progression towards smaller chips becomes a cost effective means of producing more chips per a given amount of silicon. RtS