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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Fred Weiss who wrote (3985)	11/16/1997 1:55:00 PM
From: AlienTech	Read Replies (1) \| Respond to of 120523

briefing.com Briefing has a pretty good explination on it.. Even if its all double talk.. Yea we downgraded them.. But its cause we felt like it kinda talk heh. >>In actuality, chip equipment companies are suffering more from a perception problem than from fundamental issues. With that said, the second point to consider is stock price. Whether the company has limited exposure or extensive exposure, stock prices in this group are suffering as a whole. I would anticipate that trading in this area will be very volatile for a quarter or two, but 6-9 months from now, investors will look back on this episode and consider it just a blip in the grand scheme of things. We have not yet changed our estimates because most of the companies we follow are saying that they have not seen the rescheduling of shipments that we are hearing about in the press. We have been fairly cautious as evidenced by our downgrade in August when we took the group off our recommended list. At that time, we saw the level of spending in Asia as an indication that DRAM prices were going to fall and we felt that Korea and Taiwan were potential sources for order cut backs. Typically, when equipment companies spend more that 25% on plant and equipment, it is a warning sign. At the end of this summer, spending in Korea and Taiwan was up around 40%. Spending in Japan has been more conservative and spending in the US has been mixed. <<