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

To: Donald Wennerstrom who wrote (31345)	7/10/2006 3:16:02 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 95757

These are the same guys who in 2000 called AMZN a buy but called it trash behind closed doors, so the big boys could sell. The fact that people still take what they say seriously only proves P.T. Barnum was correct.

To: Donald Wennerstrom who wrote (31345)	7/10/2006 4:28:33 PM
From: etchmeister	Read Replies (3) \| Respond to of 95757

To: The Ox who wrote (16502) 7/12/2004 9:31:59 AM From: The Ox Read Replies (2) of 31351 Merrill Lynch Downgrades Global Chip Industry 07/12/2004 Dow Jones News Services (Copyright © 2004 Dow Jones & Company, Inc.) By Dan Nystedt Of DOW JONES NEWSWIRES TAIPEI (Dow Jones)--U.S. investment banking giant Merrill Lynch dealt a further blow to the idea of a second-half turnaround for the technology sector by downgrading the global semiconductor industry to underweight from overweight, saying chip stock prices may continue to decline. In a report Monday, Merrill said "at minimum, we think that semiconductor equities offer no upside from current levels." The downgrade comes just weeks after similar moves by other major securities firms. In mid-June, UBS downgraded the semiconductor sector to neutral from overweight due to worries the world economy may not be as strong as expected in the second half of the year. Merrill's concerns also focus on demand not picking up as much as expected in the second half. The firm said companies are not willing to hold as much inventory as expected, curtailing an inventory rebuild needed to sustain the investment banker's chip industry estimates and raising the risk the chip industry will move into oversupply in 2005. Further, more production lines are being built, which will increase the supply of chips on the market at the same time companies are becoming cautious about holding them. Merrill reckons chip industry capital spending will amount to 55% of industry revenue this year, up sharply from just 17% of industry revenue a year ago. "We believe that the risk of a material downward adjustment in the financial outlook for the semiconductor business is higher now than at any point since early 2002. Additionally, we think that we're closer to a peak in margins and earnings than we previously expected," the Merrill report said. The investment banking firm also revised down its forecast revenue growth for the global chip industry in 2005 to 6% from 16%, mainly due to weaker average selling prices and lower unit shipments. Accordingly, the firm shifted price targets on companies it covers to mid-cycle from peak-of-the-cycle valuations previously. The semiconductor industry is highly cyclical, with booms in demand cause for companies to spend billions of dollars on new production lines, which leads quickly to oversupply and falling prices.