LSI Corporation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LSI Corporation

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: E_K_S who wrote (18552)	5/28/1999 1:18:00 AM
From: shane forbes	Read Replies (2) of 25814

Eric: Watch for equity offerings that come by the drove. When the time comes, the companies will need extra assets to buoy future sales, their stocks will be very high, they will go willingly to the equity markets, the stocks will soon thereafter crash... Having said that there is one significant and yet subtle difference this time around. There is a lot of outsourcing going on in the semi-sector. The foundries are serving as the capital accumulators and the risk takers here. The Motorolas of the world therefore may not have as much need for assets as before to generate the same increases in sales (TSMC et al will have the assets) - so MOT et al would not have to raise the money in the equity markets. Mmmm... the corollary here is that the peak will come when TSMC makes an equity offering. Mmmm.. Didn't TSMC just do that??? Interesting... Actually TSMC is in the right place at the right time I think - if the cycle is already over that'll be pathetic. One other major point - Y2K induced spending. I sense that some weirdness in the semisector right now is Y2K induced. How much I don't know. Yet at some point there may be a hiccup in order rates. BTW Y2K effect is seriously over-rated here. Elsewhere it may be more real... What do they say about counting one's chickens before they are hatched???

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next