SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : QUANTUM
QNTM 10.09+1.5%Dec 8 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: NucTrader who wrote (6710)12/13/1997 10:26:00 PM
From: Rob S.  Read Replies (1) of 9124
 
The finacial turmoil that has hit Asia and caused HDD, semi equip and other stocks to plunge will have more dramatic longer-term efects on capital equipment companies than on component and peripherals comanies, IMO.

Up to now AMAT, CMOS, and until recently KLIC have said that they see very strong demand from Asia. In the quarterly conference call AMAT said that sales to Asia had increased ahead of their projections, particularly toward the end of last quarter. I think that a real strong posibility is that the S. Korean and other Asian companies have seen that the worsening liquidity situation would effect their next round of financing so they pulled in any near-term cap. ex. plans - "we better spend the open lines of low interest credit we have already negotiated while we still have it - tommorrow when we need to roll-over these credit facilities, our credit lines will shrink or be much more costly". I think that there will be a trickle down of tightening cap. ex. spending in the next several months and many Asian companies will cut back or terminate new plant and equipment build-outs. The ~30% cap. ex. reductions announced recently by Samsung and Hundai are just the tip of the icegerg, IMO, and the semi quip. companies probably have further to freefall before they hit bottom.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News