Cymer (CYMI) 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 : Cymer (CYMI)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: TideGlider who wrote (6493)	10/25/1997 3:16:00 PM
From: D.J.Smyth	Read Replies (1) of 25960

Bruce <<Someone is wrong here. >> there was an article on Southeast Asia two months ago regarding the currency situtation. Basically what happened according to the article is that several box manufacturers moved operations from Thailand and Malaysia and into Southern China where labor was cheaper and the PC business was booming and is continuing to boom (funny no bear mentions that). This left Thailand and Malaysia with excess industrial and operation space as many of their local factories were supplying the now departed box makers. Prices dropped, businesses began suffering, Soros and hedge funds began shorting the currencies. The fear was that, due to their now cheapened currency they would dump products on the Western markets. Some of this has come to pass, it has been both a blessing and a curse as some companies are now able to buy parts in Southeast Asia are substantially reduced prices which will further increase their bottom line going into the fourth quarter. The curse is that many of the same parts produced in Southeast Asia are also produced in the US and other developed countries which could staunch business flow for those companies. The bottom line is that demand is not drying up for PCs worldwide, demand has been increasing at a strong clip for several years. The line is cheaper prices hurting US competitors. How does this affect Cymer? Chips are still needing to be produced. The recent announcement by ASMLF regarding their new relationship with Samsung over I-line and DUV is an example. Korea is still able to compete with the pricing structure currently being offered by the Southeast Asian countries. China is able to compete. US Box makers are now in China; Dell, HP, IBM, Compaq and report strong sales in China with respectable margins. Bill Ficklestein is taking a completely different approach to this market and giving it an extremely negative twist. Only 7% to 10% of the world's family population have computers in their homes or access to computers. 90% remains. The agenda is to tap into these markets and it is being done. Intel has established five new operations in South America and their sales there this last quarter were 15% ahead of the previous quarter. What about all this data? Why is it missing in Ficklestein's view? When the Southeast Asia situation corrects itself as it is doing already (the market has absorbed their excess inventories), the market will rebound.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next