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Technology Stocks : Texas Instruments - Good buy now or should we wait?
TXN 159.35+3.9%Nov 21 9:30 AM EST

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To: Ardner Cheshire, Jr. who wrote (2256)12/1/1997 10:45:00 AM
From: SteveG  Read Replies (1) of 6180
 
<If TXN were to preannounce a short-fall in expected Q4 earnings, when would this announcement typically be made?>

Since the quarter ends in Dec, IF they preannounced any possible shortfall (and they may NOT), we would likely see it in the next few weeks.

But let's review some cautionary comments looking forward from Oct's report:

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Texas Instruments -3: Overall Chip Growth Hampered By DRAMs

Aylesworth, Texas Instruments' chief financial officer, predicted "continued pricing pressure" for the memory chip market in the short term. Prices of dynamic random-access memory, or DRAM, chips have fallen steadily in the last two quarters.

"The industry appears to be around the low point of the cycle, but we don't have any ability to say when that will change," Aylesworth said.

Declining memory chip prices and a weak Japanese economy have hampered the chip industry's growth, he said, but strong Asian and European demand for cellular phones in the third quarter offset those factors.

Aylesworth said Texas Instruments' Materials and Controls business was up 9% from third quarter 1996 as orders for an automobile antitheft chip increased.

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Steve
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