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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: stockycd who wrote (20309)	6/12/1998 10:23:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 70976

I haven't seen this posted yet... Too bad Morgan didn't lower the target while there was still an opportunity for Investors to do something... 11:23 AM ET 06/12/98 RESEARCH ALERT - Morgan cuts =1 NEW YORK, June 12 (Reuters) - Morgan Stanley said Friday it cut its ratings on semiconductor equipment companies KLA-Tencor Corp. . and Applied Materials Inc. . to outperform from strong buy. Morgan also cut its earnings outlook and stock price targets on both companies. -- Analyst Jay Deahna said the move was prompted by weak capacity utilization rates in the semiconductor industry and the increasing likelihood capital spending budgets will be cut further. -- Deahna cut his estimate of Applied's 1998 earnings estimate to $1.24 per share from $1.35 per share, and lowered the 1999 estimate to $1.00 a share from $1.85 a share. -- Applied's stock price target was lowered to $32 from $44. -- Deahna lowered his fiscal year 1998 earnings estimate for KLA-Tencor to $1.82 per share from $1.86 a share, and cut the 1999 estimate to $1.25 a share from $2.05 a share. -- Morgan's new stock price target for KLA-Tencor is $37. ((-- Wall Street Desk Newsdesk, 212-859-1610))

To: stockycd who wrote (20309)	6/13/1998 1:09:00 AM
From: Hank Stamper	Respond to of 70976

Yeah downgrades in the sector will help to erode confidence and, hopefully, egg on the capitulation (oh beauteous wonder thou art)that we are looking for. However, as J. Snyder has pointed out in this thread (i believe), we need to see some chip company failures or some such that would bring production capacity down before earnings can really turn around. The only news we've seen so far, I beleive, is of minor production line cuts. Eh? I think there is still blood in the beast yet. It is dripping out but not yet running. Still, I bought a slice of AMAT at 27 yesterday. More to come if the price drops further. David Todtman