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A must-read Fortune Dec 28 upbeat article on techs. For those that don't have time I have excerpted chip-maker equipment relevant material below.
Merry Christmas to all.
Tulvio
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pathfinder.com
[Excerpt]
>>>Ron, what stocks excite you right now?
Elijah: The chipmaking-equipment stocks are a huge buying opportunity. I called up Micron, which makes DRAMs. What are they going to do? They spent $600 million in capital equipment in 1997 and they're going to spend $900 million in 1998. They've got to, the equipment that was leading-edge two years ago is now behind, and if you don't upgrade, you're out of business. That means good things for the equipment companies.
McNamee: Those stocks were also huge performers.
Doerr: They're all up 50% for the year--minimum.
Elijah: Yeah, they were up 100%. I own Applied Materials. I own Novellus. I own KLA-Tencor. I own Lam Research, which is working itself out. I own Asyst Technologies.
What about the chipmakers themselves?
Elijah: A gradual recovery. I own National Semiconductor, Altera, Intel, Linear Technology. We've had a significant correction and a multiple contraction too, so I think we're in a great spot to be investing in chip companies right now.<<<
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