DD,
Do you feel that at these prices the Street has adequately reflected the slowdown we are likely to see in the 1st two qtrs of '98? From your posts, it doesn't sound as if you do.
The following is an excerpt from the the Jan. 12 ed. of Business Week. How do you reconcile what Morgan is saying with your very bearish outlook. Surely, Morgan must have a better view of the industry than yourself, no? TIA for any thoughts.
Brian
businessweek.com
Excerpt:
What's more, many high-tech execs say Wall Street has overreacted to the Asian mess. James C. Morgan, chairman of equipment maker Applied Materials Inc., figures his sales might get nicked 5% if Korea slashes spending on chipmaking equipment in half, a retrenchment he considers overly pessimistic. Yet tech stocks have been hammered as if Asia were the world's premier market for technology. In fact, it accounts for just 18% of worldwide spending on information technology--a figure that shrinks to 2% for the countries in deep trouble: Indonesia, Malaysia, the Philippines, and Thailand. Even if their spending ceased, gains in the big U.S. and European markets could easily compensate. |
