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

To: Kirk © who wrote (11067)	8/19/2003 5:40:53 PM
From: Return to Sender	Respond to of 95645

Semiconductors . . . The dynamic random-access memory (DRAM) market is on the verge of recovery, said market research firm Gartner, with global third-quarter DRAM sales forecasted to rise 38 percent over the same period a year ago to $5.1 billion. For the full year, Gartner estimates DRAM sales to rise 22 percent to $18.9 billion. "Stabilizing prices and lower inventories alone do not constitute a recovery in the DRAM industry, but these factors combined, and the positive sentiment in the DRAM industry point to the possibility that the DRAM industry recovery has, at long last, begun," said Gartner analyst Andrew Norwood. Pacific Growth believes that Broadcom's conference call useful in clarifying several recent issues regarding the stock. While firm continues to believe BRCM could begin losing share in its ServerWorks division as early as 2nd quarter 2004, thinks company's diverse product portfolio should enable solid growth potential in 2004 (firm modeling nearly 20% year/year growth). However, Pacific Growth notes that the shares are now trading at 36x firm's 2004 EPS estimate, which firm believes represents full valuation. As such, firm is maintaining its Equal Weight rating. Broadcom upped at CIBC to Sector Outperform from Sector Perform. The firm finally believes all the negative sentiment overhanging the ServerWorks division is "baked in" to 2004 estimates. Firm expects co will easily be able to replace the lost ServerWorks revenue with growth in its core and emerging business. The firm calls BRCM one of the premium stocks in the semi sector showing real growth. Valuation is reasonable but not cheap, trading at 55x 2003E and 35x 2004E. Price target is $30. Marvell Tech was upped to Sector Outperform at CIBC. The upgrade from Sector Perform is based on expected continuation of strong top and bottom line growth relative to the sector despite expected ramp-down in sales to Intel. Price target $48 (42x 2004 estimate). Broadcom was upped to Outperform at Thomas Weisel. The upgrade came after the company held an unexpected mid-quarter update call yesterday to address recent issues related to company's ServerWorks business segment and to expand on its cross-licensing agreement with Intel. According to the firm, the continued expectations for robust growth and new opportunities that lay ahead, they believe that Broadcom's current valuation is compelling. BRCM is now trading at approx 3.3x EV/sales. This multiple represents a discount to firm's Wireline universe average of 5.0x. Broadcom expects current quarter sales to rise 10 percent sequentially, and reiterated its fiscal 2004 forecasts. CIBC World Markets followed by upgrading the stock to "sector outperformer" from "sector performer," saying that all the negative sentiment overhanging the company's ServerWorks division seem to be finally "baked in" to 2004 estimates. Boxmakers . . . Merrill Lynch upgrades Hardware sector, downgrades Software. Based on the monthly reading of firm's TechStrat Sector Model, Merrill Lynch is upgrading the Hardware sector to Equal Weight and downgrading Software to Underweight; says investors should by the "IAH" exchange-traded funds to reflect the Hardware upgrade and sell "SWH" to reflect the Software downgrade. RobBlack.com MarketWrap robblack.com

To: Kirk © who wrote (11067)	8/19/2003 6:52:47 PM
From: Cary Salsberg	Read Replies (1) \| Respond to of 95645

RE: "The real HP is Agilent" Recently, HPQ had a big marketing announcement with many products in diverse areas and applications. The article cited HP Research as the glue that would connect all the products and would ensure their success. I am not sure what got held back from the A spin off and got put into HP Research. Carly predicts a strong 4th quarter with all groups profitable. That doesn't signal a correction.