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

To: FJB who wrote (47822)	5/14/2010 3:14:17 PM
From: FJB	1 Recommendation Respond to of 95530

Asustek Trims Q2 View On Trouble In Europe; INTC, AMD Slide. By Eric Savitz Friday, May 14, 2010 ET. Asustek Computer, which makes Asus brand PCs, this morning cut its revenue and shipment forecast for the second quarter, citing lower demand from Europe, where it generated 41% of Q1 revenue, as well as the depreciating Euro and fallout from the Greek bond market crisis. The news appears to be causing some pressure on PC-related component stocks, including Intel (INTC) and Advanced Micro Devices (AMD). Barclays Capital analyst Tim Luke writes in a research note that the lower outlook from Asustek, in addition to recent “subdued commentary” from other PC companies and contract manufacturers such as Acer and Compal “are likely to temper sentiment toward PC related vendors” Intel and AMD, although he says meetings with management suggest the companies are on track for the current quarter. “Contrary to commentary on its recent earnings call on April 30th where CEO Jerry Shen stated that he does not believe the bond crisis in Europe would affect the company’s notebook shipments and sales for Q2, Asus changed its forecast, indicating that the uncertainty of Europe’s economy and depreciating Euro is in fact impacting the company’s outlook for both the second quarter and peak third quarter,” he writes in a research note. “We do not see lower Q2 outlook for flat as too surprising given decelerating netbook sales,” he adds. “Asus previously forecasted notebook shipments to increase by 0 -10% in second quarter, Eee PC shipments to increase by 0-5% and motherboard shipments to decline in the range of 5-10%. Asus now looks for notebook and netbook shipments and overall sales to be flat [sequentially] and increased the extent of its decline in its 2Q motherboard shipments. Additionally Asus sees China as another area of potential concern as the company is seeing weaker demand quarter to date in 2Q. We note approximately 41% of Asus’ revenues are attributed to China.” The news is adding to the intense selling pressure on tech shares. Among PC related stocks: Intel is down 87 cents, or 3.9%, to $21.62. AMD is down 76 cents, or 8.1%, to $8.66. Dell is off 37 cents, or 2.4%, to $15.07. Seagate (STX) is off 69 cents, or 3.7%, to $17.83. Western Digital (WDC) is off $1.96, or 4.9%, to $37.72. Microsoft (MSFT) is down 45 cents, or 1.5%, to $28.79