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To: 16yearcycle who wrote (18829)	4/15/1998 3:30:00 PM
From: Laker	Respond to of 70976

biz.yahoo.com Eaton Corp quarterly results. See comments on market trends, excerpted below. "We have also seen a relapse in the worldwide semiconductor equipment market that seriously affected Eaton's first quarter sales and profits." "Semiconductor Equipment sales in the first quarter reached $79 million, about level with year earlier levels. This segment recorded an operating loss of $14 million compared to break-even results one year earlier. Said Hardis, ''The renewed collapse of the semiconductor equipment market could not have come at a worse time in view of our major new product programs, the Fusion Systems acquisition, and our capacity expansion plans. We have made necessary operating adjustments, including a 13 percent reduction in headcount and a 42 percent reduction in budgeted 1998 capital spending. Much of the new product investment must continue, however, to assure that we emerge from the current downturn with the market-leading, 300 millimeter tools that will drive the next generation of wafer fab buys. ''We currently expect second quarter shipments to remain near year ago levels and, burned by the aborted late-1997 rebound, we are shy about speculating beyond mid-year. However, we are convinced that investments like the $12 million year-to-year increase in first quarter new product spending will reinforce and extend our market leading positions, enabling this business to take even better advantage of the inevitable industry rebound.''

To: 16yearcycle who wrote (18829)	4/15/1998 3:45:00 PM
From: Gottfried	Respond to of 70976

Eugene, you asked >These stocks are staying afloat partly, at least, by looking to 99. What if 99 is as bad?< The big IF! It seems to me that bulls and bears alike expect business to pick up in 1999. There is a consensus. Sometimes a consensus is wrong. This worries me more than anything else. If recovery is pushed out further than 1999, I'd expect these stocks to linger where they are or drop a bit, because people get tired of dead money. Our thread's 26 fearless prognosticators expect the recovery, as indicated by their price estimates.... geocities.com GM