I think 98 will be a very interesting, lucrative and volitile year for this Sector. I'd like to address the lucrative side.
For the last 12-18 mos the street has been talking about needed consolidation in this group (lot of reasons, but to keep it simple, huge r&d costs). There are now several co's that have gone out and carved themselves quite lucrative nitche's (sp). I'll list a few, just for conversation, Sfam,Fsii,Klic,Cymi,Utek,Pria,Cohu,Klic etc,etc.
Morgan (ceo Amat) has said in the past that he feels Amat has all the expertise inside, to avoid going outside for an acquisition. Wrong!!!
I'll bet, your inheritance, that the big boys (Amat,Nvls,Lrcx,Klac,etc) will make some strategic acquisitions in 98, and that the big profits $$$, will go, to those of us, that can figure out, who those acquired Co's will be.Obviously, these low second tier stock prices, make acquisitions even more appealing. |
