WDC, NAND, NVM, enterprise storage systems, etc. Message Board

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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.

SNDK 220.51

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Nov 25 3:59 PM EST

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To: Sam who wrote (3433)	1/6/2018 2:40:22 PM
From: reddy_s	of 4829

Interesting perspective on this news about Chinese OEM's complaint about Samsung: seekingalpha.com Summary The Chinese OEMs' appeal to NDRC will have no long-term effect. The episode is best seen as a validation of - "it's different this time." The US and ROW must get involved to resist Chinese efforts to subvert world trade. “By petitioning NDRC to investigate Samsung for monopolistic practices, Chinese smartphone brands hope that Samsung and DRAM suppliers following its lead will consider carefully before initiating the next round of price hikes,” says DRAMeXchange research analyst Avril Wu. SA – Brady Betz “Toto, I've got a feeling we're not in Kansas anymore.” - The Wizard of Oz, by L. Frank Baum. Folks who have been following and/or investing in the semiconductor memory industry, especially the DRAM producers, were treated to what can only be described as a surreal market reaction to a TrendForce report this morning. The TrendForce article reported an effort by Chinese mobile DRAM OEMs to pressure Samsung ( OTC:SSNLF) to reduce, or at least to ameliorate price increases of DRAM memory. Seeking Alpha cited the report, focusing on the last sentence in the following quote. “Nevertheless, NDRC’s recent action, along with slowing shipments from Chinese smartphone brands, will adversely affect the 1Q18 mobile DRAM market. The latest market survey finds that Samsung has taken the initiative in lowering quotes for Chinese smartphone makers even with the tight supply. The average sequential quarterly increase in mobile DRAM prices for 1Q18 is projected to reach just 3%, smaller than the initial forecast of 5%.” The knee-jerk market response to that headline was to knock down Samsung shares by 5% and Micron 1%, presenting a wonderful buying opportunity on stocks that will soon be much more expensive, so that’s a good thing, but it’s the larger perspective on this episode that I think is worth our time exploring. Beyond the sheer stupidity of the market reaction, there are larger lessons to be gleaned from these events. So let’s get to it. ...

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