Ask Michael Burke 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.

Politics : Ask Michael Burke

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Earlie who wrote (25124)	12/16/1997 10:23:00 AM
From: jeffbas	Read Replies (3) of 132070

Re: "multi-year contraction phase" Are you predicting less chips to be produced by the industry, lower revenues for the industry, lower margins, or what? I have not seen any one predicting either of the first two. Lower margins temporarily, probably. I think too much is being made about the impact of currency changes in Asia. These are not cotton shirts where most of the cost is labor. Most of the costs are/were in plant and equipment priced in dollars. If Koreans do not depreciate these costs in the price they will not have the money to maintain compatitiveness and will soon be selling the last generation of product, without the wherewithal to produce the next - in other words not a multi-year contraction phase. As I would be interested in shorting MU on a rally, would you please educate me on what is wrong with the above analysis.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next