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

To: Donald Wennerstrom who wrote (10535)	7/10/2003 6:20:12 PM
From: Return to Sender	Respond to of 95515

Semiconductor Equipment . . . Needham initiated Mykolis with a Buy rating and $18 target; firm says materials company's tend to have higher valuations than equipment co's in the current environment, which occurs because of the more stable growth and less risk of materials rev streams; as such, firm believes that MYK is mispriced since it is trading at lower multiples than both the semi materials co's and semi subsystems company's that it competes against. Semiconductors . . . Micron Technology saw its rating raised by UBS to a "buy" rating from a "neutral" and lifted its 12-month price target to $18 from $12. UBS cited three factor as reason for the upward action on Micron: the likelihood of continued strong pricing in the second half; the probability of better supply-demand dynamics during the rest of 2003 and through much of 2004; and the potential for margin and earnings upside. Broadcom was reiterated Hold at Legg Mason following announcement last night that company has discovered another problem with one of its Grand Champion chipsets from its ServerWorks division. While Broadcom does not officially expect any specific material financial impact from this issue, Legg Mason believes there could be broader implications. With two significant Grand Champion issues in four months, firm believes that customers will at least have to make a more concerted consideration of diversifying its supplier base. Toshiba and Elpida introducing XDR DRAM is seen as favorable for Rambus. Vitesse Semi target raised to $8 at Wedbush Morgan from $5.50 reflecting greater confidence in better end-markets for company's storage, enterprise and service provider businesses. The firm noted that recent surveys of IT spending indications have indicated a more positive tone for the second half of 2003 and 2004. Additionally, Seagate has signaled a strong demand for enterprise hard disk drives. Rambus announced that the Court of Chancery of the State of Delaware has issued a stipulated order dismissing without prejudice the amended complaint in a consolidated derivative case against Rambus. The dismissed derivative case arose from allegations concerning Rambus' 1991 - 1995 attendance at a standard setting body called JEDEC. The plaintiffs in this case agreed to stipulate to dismissal without prejudice following rulings favoring Rambus from the Court of Appeals for the Federal Circuit. Texas Instruments sold 24.7 million shares of its stake in Micron, which provides the co with pre-tax gain in accordance with GAAP of $106 million with the sale. This transaction will be recorded in other income in Texas Instruments 3rd quarter results. In addition, the company will also recognize a reserved tax benefit of $162 million in 3rd quarter, which is attributed to the realization of a tax loss carryback due to the sale. Boxmakers . . . Bill Shope at J.P. Morgan said his outlook on PC demand continues to be cautious following Dell Computer chief operating officer Kevin Rollins' comments that demand was not improving and business conditions are still difficult. Dell shares are slipping 27 cents to $32.90 in pre-open trading. "Mr. Rollins was very explicit in his view that there are no signs of any end user demand recovery," Shope said. RobBlack.com MarketWrap: robblack.com