Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (5380)	10/12/2005 7:58:59 PM
From: Proud_Infidel	Respond to of 5867

I am surprised at the lack of movement in AH, as this was most certainly NOT baked into the cake.....also, note that the only analyst who is quoted is Fitzy of BoA..... UPDATE 2-Lam Research net falls, but signals rebound coming Wed Oct 12, 2005 06:38 PM ET (adds share price rise, details on orders, outlook, byline) By Eric Auchard SAN FRANCISCO, Oct 12 (Reuters) - Lam Research Corp. (LRCX.O: Quote, Profile, Research) , a supplier of wafer fabrication tools, on Wednesday posted a sharp fall in quarterly profits amid an industry-wide slump, but the profit still topped Wall Street expectations. Looking ahead, the Fremont, California-based chip equipment maker signaled that the downturn in its own business appears to have ended and that customer demand should pick up through the rest of 2005 and into the first quarter of 2006. "We expect new orders for December to increase approximately 5 to 10 percent over September levels," Newberry told investors on a conference call following the report. "Shipments will increase approximately 30 percent," he said. "We have begun to see positive signs of demand for semiconductor equipment," Newberry said. "We ought to expect that things would remain positive in the March quarter," he said, but he did not offer specifics beyond three months out. Shares of Lam rose 4.3 percent, or $1.30 cents, to $31.50 in after-hours trading on the Inet exchange. Lam's shares are up 10 percent on the year. By contrast rival Applied Materials has dipped slightly so far this year. Net income for the first fiscal quarter, ended Sept. 25, fell to $49.5 million, or 35 cents per diluted share, from $89.8 million, or 64 cents a share in the year ago period. Wall Street was looking for a profit, on average, of 30 cents per share. Estimates ranged between 26 cents and 34 cents per share, according to Reuters Estimates data. Revenue fell 23 percent to $320.9 million from $419.55 million in the first quarter of last year -- a recent high-water mark for the industry, which enjoyed a banner year in 2004 only to see chip makers sharply curtail their spending in 2005. Analysts were looking for revenue of $324.9 million in the latest quarter. Forecasts ranged from $311.3 million to $340.0 million, according to Reuters Estimates. New orders recorded in backlog grew 3 percent to $326 million in the September quarter over the June quarter's $315 million. In July, Lam executives had cautioned that orders from memory makers -- which had helped fuel strong results through June -- would subside and be flat to down 5 percent for the September quarter compared with the June quarter. The company said it expected revenue for its fiscal second quarter ending in December of $330 million to $350 million. Earnings per share are expected to range between 34 cents and 39 cents per share it said. This outlook includes $8 million to $9 million of employee stock option expense, it said. Bank of America analyst Mark Fitzgerald, who rates Lam "neutral" in terms of investment potential, said investors are leery of jumping back into the semiconductor capital equipment sector due to concerns about the global economy. "I don't think anyone is going to break out (and buy) semiconductor capital stocks which are at the bottom of the industry food chain and when everyone is worried about what's happening with consumer spending," the analyst said. Lam is undervalued relative to larger names in the equipment industry such as Applied, the world's largest maker of chip gear, and Novellus Systems Inc. (NVLS.O: Quote, Profile, Research) . But its shares performance is more volatile than either stock rivals. The shares are valued at 14 times Lam earnings for the trailing 12 months, versus the 20 times multiple Applied and Novellus carry. As a group, its industry sector boasts a 25 times multiple versus the 23 multiple for the S&P 500 index.

To: Kirk © who wrote (5380)	10/13/2005 8:10:42 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 5867

From sixty2nds of the "W" thread: 07:40 LRCX Lam Research: Cyclical turn occurs, stock should push through key resistance at $32 - JP Morgan (30.20 ) -Update- JP Morgan notes that LRCX was the third major equipment co to report or indicate a C3Q05 positive bookings surprise, marking a cyclical upturn for the industry. ASML reported new unit bookings upside surprise and Tokyo Electron management indicated chipmaking orders grew 19% QoQ. Now that there is tangible evidence that orders are turning up, they believe large/mid-cap front-end equipment stocks can push through tough resistance at the March/July highs and likely outperform chip stocks through year end. Firm says upside cyclical sustainability and magnitude are unknown, but utilization rates are high, there is need for advanced capacity, and one/two-quarter cycles are rare. Reits Overweight and Focus List status on LRCX.