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Technology Stocks : Novellus -- Ignore unavailable to you. Want to Upgrade?

To: Dave Chanoux who wrote (1638)	10/14/1998 7:20:00 PM
From: Math Junkie	Respond to of 3813

I would hope that the technology buys would get the recovery started, with capacity buys finishing the job later on.

To: Dave Chanoux who wrote (1638)	10/15/1998 4:14:00 PM
From: Q.	Read Replies (1) \| Respond to of 3813

re. DSO: Novellus stock went up when rev and eps exceeded expectations. Trouble is, the rev and eps went up because they are being aggressive in shipping product that the customers can't pay for. Rev and eps are recognized when they ship, of course. Thus, rev and eps go up. Usually Novellus is the best financially managed co. in its peer group, so maybe they know what they are doing. But there is a risk here that some customers will do as the Thailand fab did a year ago, and never pay. Then Novellus will have to write off the rev and eps it reported this quarter. That's my understanding of the situation. If I'm wrong, please correct me.