tom "i'll shellac dolt investors" kurlack piled on after the bell..
Tuesday March 17, 4:48 pm Eastern Time
RESEARCH ALERT-Merrill chip analyst sees price war
NEW YORK, March 17 (Reuters) - Chip market oversupply, weak pricing and slow market growth are likely to depress
semiconductor stocks versus the overall market for the rest of the year, Merrill Lynch analyst Thomas Kurlak said Tuesday.
In a research note, Kurkak said the unfavorable market conditions could drive stock prices in the industry to new lows this
summer as companies struggle to overcome slowing demand for end products, particularly personal computers.
In addition, prices for 64-megabyte Dynamic Random Access Memory (64 Mb DRAM), which are replacing older lower-cost
16Mb chips in the market, are already falling and a price war could erupt in the highly competitive DRAM market, Kurlak
argued.
In a note outlining his neutral rating on DRAM giant Micron Technology (MU - news), Kurlak said, ''It is still not too late for
investors to avoid what is shaping up to be a 64 Mb bloodbath, in our opinion.''
Overall semiconductor market growth is expected to remain ''below trend'' for another one or two years, he said.
------
may be another poor market for mu tomorrow and going forward. one question.
are they buying the dips or are the dips buying? ;-) |
