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Technology Stocks : Asyst Technologies (ASYT) Good Value/Where is the Bottom? -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (2174)	7/9/2003 7:26:05 PM
From: SemiBull	Read Replies (1) \| Respond to of 2313

Asyst Tech Grabs Market Share During Economic Slump Wednesday July 9, 12:34 pm ET By Amy Braunschweiger Dow Jones Newswires NEW YORK -- Asyst Technologies Inc. (NasdaqNM:ASYT - News) has positioned itself to take advantage of a stronger economy by taking market share during the economic slump. That was the view Wednesday from Merrill Lynch, which raised its investment opinion on Asyst's stock following the semiconductor equipment company's latest contract win. In midday trading Wednesday on the Nasdaq market, Asyst shares were up $1.67, or 21%, at $9.47, on volume of 4.8 million shares, compared with average daily volume of 525,091 shares. Earlier Wednesday, the stock rose more than 30%, to $ 10.50 after rising 8.3% Tuesday. Tuesday, the company disclosed that Singapore's UMCi will use Asyst's 300mm automated wafer handling system. UMCi is a joint venture between United Microelectronics Corp. and Infineon Technologies AG . "This was a highly competitive win," Merrill Lynch analyst Brett Hodess said in a note. "This represents taking market share away from an incumbent competitor -- very difficult to do." The analyst raised his rating on Asyst's stock to "buy" from "neutral," and established a 12-month price target of $13 a share. He also narrowed his fiscal fourth-quarter loss expectation to 80 cents a share from 90 cents. A representative for Asyst, based in Fremont, Calif., wasn't immediately available for comment. Along with gaining market share, Asyst has also cut costs by outsourcing manufacturing. According to Merrill's Mr. Hodess, the move could raise margins by three percentage points and prompt an earlier return to profitability. Overall, the capital spending outlook for the semiconductor equipment industry remains stable and will likely improve in the second half, Mr. Hodess wrote in a separate note. Mr. Hodess expects equipment revenue in 2003 to decline by 2% from last year. The analyst, however, expects revenue at large-cap companies in the sector to increase 39% in 2004 and revenue at small-cap companies to rise 30%. "These are in-line with historically strong first-year recoveries," Mr. Hodess wrote. The analyst wasn't immediately available for disclosure information. -By Amy Braunschweiger, Dow Jones Newswires; 201-938-2205;