CRUS, good buy? Message Board

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Technology Stocks : CRUS, good buy?

CRUS 123.21

-0.1%

Jan 16 9:30 AM EST

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To: Synapsid who wrote (5905)	6/7/1998 12:01:00 AM
From: ted quinn	Read Replies (2) of 8193

Hey Sid & Calvin & others, I'm having trouble figuring out how Crus can pull out of its downward spiral. It has all this expensive fab capacity that is severely underutilized as crus is selling far fewer chips than they planned for (i.e. the fab JVs deals were struck when they "owned" the graphics chip market, now gone, gone, gone). They are only about 8 months from taking another $50 million fab writeoff. (Foundry capacity is going for a song now, with Taiwan at 80% of capacity.) What's more, their most recent product offerings have been quite low-priced and would need tremendous volume just to earn a decent return. I cannot figure this company out. And now they have the "King of Shrink-Wrapping" on board (Board). What will he contribute besides being a source of ribbing around the board table because of the $40 million bath he took on the stock?

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