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To: Lizzie Tudor who wrote (18659)	10/28/2003 12:37:35 PM
From: Bill Harmond	Respond to of 57684

12:04 ET SOX surges 3.3% as data points fall into place The semiconductor capital equipment space is en feugo this morning do to a confluence of positive inferential data points suggesting the long anticipated recovery of the semiconductor industry is either well underway or has already begun. As we have noted on In Play, several catalysts have provided the extra momentum needed to set this group on fire. AMKR (+12.3%) provided solid numbers last night, which led to analysts increasing price targets with some upgrading the stock. The TSMC results also bode well for the semiconductor industry given the co suggesting on its call that demand is continuing with capital expenditures expected to be up "significantly" in 2004 (see 11:09 comment) Finally, as noted earlier (09:26 comment), Reuters was out with a story which illustrated Japan's chip equipment orders were up 28% year/year. This is in addition to the increase by the World Semiconductor Trade Statistics group of 2003 and 2004 growth estimates to 14.2% (up from 11.5%) and 19.4%, respectively. It is this barrage of positive information flow which will guide these names higher as it continues to filter out and disseminate accordingly. However, in this market, being on the wrong side of guidance (i..e KLAC guiding lower) can be detrimental to the stock's sector based upwards trajectory.