Applied Micro Circuits Corp (AMCC) Message Board

STOCKTALK

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 : Applied Micro Circuits Corp (AMCC)

AMCC 8.450

0.0%

Feb 3 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: techanalyst1 who wrote (1627)	10/15/2001 3:09:54 AM
From: FR1	Read Replies (2) of 1805

I can't say I disagree with most of what you say as long as you agree that we are in a very volitle time and it is hard to predict anything. Everybody is going to lowball all their projections. I sort of disagree with your way of saying things but it is really just semantics: the fact of the matter is that customers across the sector were over ordering and hoarding and too much product was out there. I don't think anyone was hoarding anything (for what?) and too much product was not out there. AMCC and other broadband semis had a large list of customers and were producing just what was needed when the FED decided to choke off the money supply and kill the economy. This made AMCC's cutomer base dry up overnight and killed all but strong. As a consequence of the FED action the baby bells suddenly woke up with no competiton and a stranglehold on the metro market. They realized that they now have almost no reason to rush and roll things out. So they put the brakes on and things have slowed to a crawl. Rickey pointed out that the problem is not that there is a glut of AMCC product out there but rather that there are no orders coming in. PMCS is in a slightly different position. If Quest and others suddenly decided to go gangbusters on a broadband infrastructure build out which they claim they are going to do (ha!) things could change overnight but they have really have absolutely no reason to do it. If they sit still they are very profitable collecting good money every month from their subs. If they build out it costs them money. So no competition = no growth. It is a classic bust part of the FED boom-and-bust cycle. What ususally happens at this time is that the money is so dirt cheap that businesses with the need for expansion would be foolish not to take advantage of it. Note the securities industry lowering the barrier for IPOs and congress talking about massive spending. One way or the other they will get things going but how fast and how much comes our way is anybody's guess.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next