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

To: Sarmad Y. Hermiz who wrote (29223)	3/9/2006 5:28:59 PM
From: Donald Wennerstrom	Read Replies (2) \| Respond to of 95765

Traders Turned Defensive as Morning Rally Faded [delayed] Thursday Mar 09 2006 17:09:04 EST Ridgeland, MS, MAR 09, 2006 (EventX/Knobias.com via COMTEX) -- <<An early rally turned to broad-based selling at midday with all three major averagees (Dow -33, S&P -6.2, Nasdaq -17.7) and key sector indexes (SOX -1.4%, RLX -0.8%, XBD -0.9%) finishing in the red. Only consumer staples and telecom sectors managed gains on a day where technology and energy sectors led to the downside with (1%) declines. Investors snapped up the relatively safe brewers (BUD +1.8%) and nondurables (CL +1.3%). Autos (GM +4.5%, F, DCX) also faired well on talk of progress in Delphi's labor talks. The weakness in the oil patch came despite gains in the oil and gasoline futures market. Refiners were only mixed, despite a 7c/gal jump in April gasoline futures. In the tech sector GOOG (-3%) and YHOO weighed on the internet industry while semi industry stalwarts QCOM and NSM fell despite the absence of bad news. AMD & INTC declined after JPM reported a price war risk.>>

To: Sarmad Y. Hermiz who wrote (29223)	3/9/2006 5:36:37 PM
From: Return to Sender	Read Replies (1) \| Respond to of 95765

>Was the "cycle" in the stocks' price only ? Or was it in the booking, earnings, and stock price ? In other words, did the stock price crash because the P/E compressed ? or did earnings fall ?< I would say stock prices only. Even value investors have to buy a stock before earnings for the company improve in order to reap the most benefit. I think the question now for investors in this industry is simply can companies continue to beat estimates in the future. By that I mean 6 months out and beyond. And at this time I have to wonder if institutional investors are beginning to unload stocks thinking that estimates will have to be lowered. But the uptrend in the SOX is still intact even if the index drops all the way down to 480. RtS