Hi Iris~Who can deny that your recent strategy of, shall we say, default investing, has been successful? While avoiding any losses by not trading at all, not making any profits can therefore also be considered successful when the risk of all losses is also removed.
Glad to see you're still focusing on the research though.
Here's an article that made me think of you. Guess I don't really understand the difference between RAM and DRAM that well, but have noticed that the demand for RAM is way down as everybody wants DRAM these days instead. (I notice such things because I'm one of those who enjoys keeping obsolete equipment running flawlessly).
Anyhow, I had no idea the world wide memory market has been crushed so badly.
Regards, Rick
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News Alert from Dow Jones Online News via Quote.com
Topic: (NYSE:TXN) Texas Instrs Inc
Quote.com News Item #4822157
Headline: (UPDATE) Taiwan's Texas Instruments-Acer Expects Larger 1997 Loss
======================================================================
By Russell Flannery
Staff Reporter
HSINCHU, Taiwan -(Dow Jones)- Texas Instruments-Acer Inc., one of
Taiwan's largest makers of computer memory chips, plans to widen its
1997 loss forecast to more than 3 billion New Taiwan dollars (US$91.6
million) from the current forecast of NT$1.87 billion.
Also, it will eliminate overtime work during the upcoming 1998 New
Year's holidays, said the company's chief financial executive Tuesday.
TI-Acer Chief Financial Officer Lora Ho said the moves follow a
collapse in global prices for dynamic random access memory, or DRAM, the
widely used type of personal-computer memory chips, and the fall of as
much as 15% in the value of the New Taiwan dollar against the U.S.
dollar in the past two months.
Shares in Acer Inc., the Taiwan computer maker that owns 48% of
TI-Acer, dropped 4.5% in Taiwan Tuesday.
Average international spot prices for 16-megabit DRAM have plunged
from $9 to about $2.50 in the second quarter because of
slower-than-expected demand and a fall in the value of the Korean won,
analysts said. South Korea is the world's largest DRAM maker.
In the past three months alone, spot 16-megabit DRAM prices have
dropped more than 50%. About 30% of Taiwan chip sales of around $5
billion this year will come from DRAMs. The island's industry ranks as
one of the world's five largest.
Citing falling DRAM prices, TI-Acer in October delayed $400 million
of spending on new equipment to make chips, and predicted a 1997 loss of
NT$1.87 billion, reversing an earlier forecast of a net profit of NT$660
million.
Ho also said TI-Acer won't ask employees to work overtime during the
Lunar New Year holidays in late January to boost production. That's a
switch from a year earlier, when the company asked staff to put in extra
hours to meet demand.
TI-Acer isn't the only DRAM maker to cut its 1997 profit forecast.
Last week, Mosel Vitelic Inc. lowered its forecast of 1997 net profit by
42% to NT$2.35 billion. Sales this year will total NT$9.06 billion, down
from an earlier prediction of NT$13 billion.
In addition to Acer Inc., TI-Acer's major shareholders include Texas
Instruments Inc. (TXN), which has a 33% stake, and Taiwan investment
company China Development Corp., which owns 14% of the chipmaker.
Copyright (c) 1997 Dow Jones & Company, Inc.
All Rights Reserved.
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BTW, I'd sure like to be able to buy an armload of those 16 megabit DRAMs at $2.50. Hell, I'd spring for the $9.50 and still be happy as a clam!! |
