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

To: etchmeister who wrote (5447)	1/19/2006 3:51:11 PM
From: Proud_Infidel	Respond to of 5867

Lam 2Q Profit Tops Estimates; Shares Soar Thursday January 19, 3:42 pm ET Lam Research Shares Soar After Company's Second-Quarter Earnings Beat Wall Street Expectations NEW YORK (AP) -- Shares of Lam Research Corp. soared on Thursday after the company reported second-quarter earnings that flew in well above analysts' estimates, even though much of its upside was achieved through a reduced tax rate. Late Wednesday, the semiconductor processing equipment maker said it earned $77.8 million, or 55 cents per share, down from $83.6 million, or 59 cents per share last year. Although the company's profit slipped, results easily beat analysts' expectations for earnings per share of 39 cents. "By all measures, Lam crushed second-quarter numbers, resoundingly beat our estimate of 37 cents per share, with a comparable 55 cents, aided by 10 cents per share from a lower tax rate of 10 percent, versus our model at 27 percent," CIBC World Markets analyst Gary Hsueh wrote in a research note. Still, Hsueh pointed out that much of the company's upside came from a slashed tax rate. "Fundamentals at Lam are definitely strong, but we recognize that in the current quarter, more than half of the upside came from a lowered tax rate," Hsueh said in an interview. Other analysts had unbridled enthusiasm for the stock. JPMorgan analyst Jay Deahna called Lam Research a "class act," and Bear Stearns analyst Michael O'Brien said Lam "flexed its dominating etch muscles." O'Brien upgraded his rating on the stock to Outperform. Investors were equally pleased with the company's results, sending shares of Lam Research, which have traded between $24.24 and $39.92 over the last year, up 13.2 percent, or $5.05, to $43.37 in afternoon trading on the Nasdaq. Earlier in the session, the stock set a new 52-week high of $43.65. Riding on Lam's coattails was Brooks Automation Inc., which Bear Stearns' O'Brien also upgraded to "Outperform" from "Peer Perform," largely based on results from Lam Research. Brooks supplies automation products to the semiconductor market. "Lam has historically been Brooks' largest customer and the company will benefit from the significant ramp that Lam is now undergoing," O'Brien wrote in a research note. O'Brien lifted 2006 earnings estimates on Brooks to 66 cents per share, including stock option expenses, up from a previous estimate of 38 cents per share. Shares of Brooks, which have traded between $11.25 and $18.91 over the last year, were up $1.40, or 9.7 percent, at $15.89 in afternoon trading on the Nasdaq, with volume almost four times normal daily volume. Axcelis Technologies Inc., which makes implantation equipment used in semiconductor manufacturing, also got a ride on the love train. Shares jumped 94 cents, or 16.2 percent, to $6.75 in afternoon trading on the Nasdaq after Needham analyst Robert Maire upgraded the stock to "Buy" from "Hold." "Orders are improving and fourth quarter orders are up more than 85 percent sequentially," Maire wrote in a research note. "According to management, order timing should continue to improve and revenue levels for global sales are expected to increase for the fourth quarter."

To: etchmeister who wrote (5447)	1/19/2006 4:03:06 PM
From: Proud_Infidel	Respond to of 5867

Lam closed just shy of $44 on 11M+ shares....not a bad day;-)