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Technology Stocks : Amkor Technology Inc (AMKR) -- Ignore unavailable to you. Want to Upgrade?

To: tech101 who wrote (320)	7/27/1999 12:27:00 PM
From: tech101	Respond to of 1056

There is still a long way to go to reach Amkor's real valuation. TSM -- the largest independent semiconductor foundry in the world has the same revenue as Amkor -- $1.6 billion in 1998, but its PE is about 5 times and its market capitalization of $37 billion is about 20 times of AMKR's. At this time TSM has higher profit margin. But AMKR is catching up because Amkor is also tapping into wafer production business, and its P&T business is concentrated in advanced high-margin products. In addition, Anam is becoming a contributor instead of a burden. If AMKR reaches 1/3 of the valuation of TSM, we shall see AMKR at 100. Conclusion, either TSM has to come down, or AMKR has to come up, or both. That's the power behind the action.

To: tech101 who wrote (320)	7/27/1999 12:50:00 PM
From: tech101	Read Replies (1) \| Respond to of 1056

What possible factors may push AMKR price higher and higher? 1. Good earning coming out on August 5 and optimistic outlook 2. Tighter and tighter demand for capacity pushes higher utilization and profit margin 3. Announcements of strategic alliances, partnership, or partial ownership/investments from major chip vendors 4. Further investment/partnership of Anam with investors other than Amkor 5. Network/telecommunications, PC, and consumer products manufacturers start to stack up chip inventory before Y2K and replace malfunctioning equipment (billions of them) after Y2K 6. Amkor starts to pursue legal action and makes multiple claims on their intellectual property right against some chip suppliers (Remember Amkor owns more than 30 patents) 7. Mentions/interviews with CNBC, Nightly Business News, WSJ/Barron's, Business Week, or other media 8. A few upgrades and new ranking from some Wall Street analysts How realistic would these factors be and what effects would each individual event have on Amkor price ? Make your own judgement.