CYPRESS Semiconductor (CY) Message Board

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Technology Stocks : CYPRESS Semiconductor (CY)

CY 23.82

0.0%

Apr 16 5:00 PM EST

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To: Trey Yon who wrote (1690)	1/12/1998 2:14:00 PM
From: Trey Yon	Read Replies (1) of 2694

Where Micron Leads Cypress will follow: Drivers for Cypress stock going forward: 1) The stock is up because bottom fishers believe memory prices (now below break even for even the lowest cost producers) cannot move much lower for any length of time. 2) The Korean dumping case is scheduled to conclude in February, and new dumping cases are being considered by Micron. 3) The financial crisis in Korea will mean less DRAM capacity coming onstream in late 1998. The short term impact of the Korean crises has resulted in DRAM competitors hemorrhaging chips in an effort to cough up some cash. Rumor: Japanese vendors of plastic for packaging (Sumitomo is the largest) cannot get letters of credit for sales to Korean DRAM makers and so are holding up shipments. Despite all the trouble in Korea, it seems doubtful that a $2 finished chip would be held up for want of currency to pay for $0.10 of plastic. More logically, DRAM bit demand has been increasing at greater than an 80% annual pace, capacity commitment has been cut, and perhaps supply/demand is coming into balance. 4) The Korean currency & stock market appear to have stabilized at least for the near term.

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