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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: jim kelley who wrote (53715)	9/17/2000 9:52:38 PM
From: Don Green	Read Replies (1) \| Respond to of 93625

Samsung Electronics Exasperated at Continued Fall in Share Prices 2000/09/15 For Samsung Electronics, news of the falling prices of the 64 megabit DRAM (dynamic random access memory) chips is not as worrisome in itself, as its effect on stock prices. When the market standard memory device was trading at above $9 back in April, Samsung's shares fetched a record 380,000 won. But this fell to 235,500 won as of Thursday as the media reported prices falli g, coming down to a level even lower than the previous low of 239,000 for the year, set in February. While the fluctuation in the prices of the main products certainly affects share prices, what Samsung is complaining about is the fact that the 64M chips are no longer the main profit maker. ``In fact, we are gradually cutting down on the production of the current market standard in favor of more profitable items, like the EDO (extended data output) DRAMs,'' one Samsung official said. Indeed, the production of the 64M DRAMs accounts for only 20 percent of all output with the EDO DRAMs taking up 25 percent, the 128M DRAMs 20 percent and Rambus DRAMs 16 percent. The company official said the production volume of the 64M DRAMs is continuing to fall and is being substituted by the 128M units, which are quickly becoming the new market standard. ``Our analyses have shown that the fall in the prices of the 64M units has little effect on Samsung's overall business performance and it really is not advisable to trade stock based on its price fluctuation,'' said one analyst of Daishin Securities. On the other hand, he pointed out that Samsung's apparent lack of transparency, such as its reluctance to make corporate data readily available, is leaving investors with few indicators to work with. No matter what the actual situation is, Samsung's stock is suffering along with the entire Korean stock market and it remains to be seen if further changes in DRAM prices will affect its share prices, the analyst said. koreatimes