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Mohan, I actually answered this one last night, but got disconnected
during the submission. First, don't worry about asking too many
questions. If you do, I will simply start a subject, "Ask MB w/o MV."
-g- The Pru guy has two problems, as I see them. First, as a chip
analyst at a brokerage firm, he has to have buy recommendations on
his list. Holds bring in no orders and sells bring in no investment
banking business. So, even if he hated all of them, his bosses would
say to choose some he hates least as buys. But, more importantly, he
mistakenly believes that this is an inventory correction. He is
wrong and it is obvious just from checking the #s. Orders have gone
up, on a unit basis, for all chip categories the past 7 months. That
doesn't happen with an inventory correction. But $ orders are down
because the world is swimming in too many chips. This is a supply
problem and maybe Art Laffer (the Joker, as I call him) is right for
once
in his life. This is a supply side problem, not a demand side problem.
I'll send this one and then continue on another posting to confuse the
disconnect genie. MB |
