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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (8166)	10/12/1998 3:55:00 PM
From: Jeffrey D	Read Replies (1) \| Respond to of 42834

Skeeter<<dodging windshields is getting to be challenging ;-) didn't see the posts you referred to so my intent isn't to rub salt in the wounds. just wondering if the one way wonder had made any comments about the futility of ANYONE predicting short term price movement - including his truly.>> Yes, back to Skeeter instead of "bug." Bob owns Novellus. Heard him say he bought it on his radio show about a month ago when it was around 24. Good buy, huh? AMAT, in sympathy, up around 4 itself today. Hmm, did you dollar cost average on AMAT like Bob suggested? See below. Jeff <<Novellus has better-than-expected Q3, stock jumps SAN FRANCISCO, Oct 12 (Reuters) - Novellus Systems Inc., a maker of semiconductor equipment, reported third quarter earnings that were better than Wall Street's expectations, fueling a 25 percent jump in its stock. Monday, Novellus reported third quarter net income of $7.6 million, or 22 cents a share. While net income was down 62 percent versus the year-ago net income of $20.1 million, or 57 cents a share, it surpassed Wall Street's consensus estimate of 12 cents a share, according to First Call, which tracks analysts' estimates. Novellus' third quarter sales of $107 million were down 31 percent from year-ago sales of $155.1 million, due to the ongoing semiconductor industry slump and the resulting slowdown in capital spending by chip makers who are buying less equipment. "Given the severity of the current industry downturn, we are proud of the company performance during the quarter," said Robert Smith, executive vice president and chief financial officer of San Jose, Calif.-based Novellus, in a statement. Smith said the company's aggressive cost control measures resulted in an 18 percent decrease in operating expenses from the second quarter of 1998. Novellus' shares jumped about $5.69 to $28.75 in active trading. Shares of other chip equipment makers also climbed, including Applied Materials Inc. <AMAT.O>, the largest maker of semiconductor equipment. Applied shares rose $3.125 to $26.8125. "The upside surprise is mostly attributable to sales, general and administrative (expenses) 3.5 percent lower than estimate, demonstrating management's ability to contain costs," said Gunnar Miller, a Goldman Sachs analyst, in a note to clients. "We view this quarter as operationally better than expected." For the nine months, Novellus earned net income of $44.7 million, or $1.28 a share, compared with a net loss of $118 million, or $3.57 a share for the year-ago period, which includes a restructuring charge of $235.2 million in the second quarter 1997 for layoffs and other cost-cutting measures. Revenues for the nine months were $413 million, up 11 percent from sales of $371.2 million for the same period a year ago.>>