Jamie, thanks for Pru's outlook on VECO. One thing however escapes me, the analyst bases, at least part of his argument, on the fact that the storage industry has gone down six months ahead of the Semi's and thus he reasons, it will come ahead six months ahead. That is a strange rational IMHO. Grant you, both are strongly driven by PC demand, but that never really petered off. The over supply is what drove the storage people down and the over supply is what drove the semi's down. In the semi's we have seen massive closing of excess capacity, but in the storage, not much really, one marginal player was taken out and shot more than a year ago, and that is about it. It seems that the overcapacity problems, while being resolved (well, barely) in the semi business have not bee addressed as well in the storage, and thus the storage down cycle should persists until some capacity is taken out. What am I missing?
Zeev |
