Silicon Investor (SI) -- The First Internet Community

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 : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Charles R who wrote (8865)	10/21/2000 3:02:20 PM
From: Gottfried	Read Replies (1) \| Respond to of 10921

Charles, thanks for the link. The article says >While there are about 3,000 construction workers employed at the site, a tight labor market has made it difficult to find qualified electricians, plumbers and other workers. The company discovered this week it wouldn't be able to finish a 120,000- square-foot clean room in time for the planed Thanksgiving Day opening.< Sounds fishy to me. Gottfried

To: Charles R who wrote (8865)	10/21/2000 7:06:27 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 10921

Re: Intel pushout: In previous downturns, there is a tendency to "explain away" the first classic signs that TheCycleIsOver. The usual excuses are: 1. it's company-specific 2. it's sector-specific (just PCs, for instance, not all chip sectors) 3. it's just lumpiness in the channel 4. other constraints. 5. politics Now, a "labor shortage" is an elastic situation. If the market for the chips you're going to make is red-hot, then you do everything possible to keep to schedule. You pay overtime. You deliberately overstaff, keeping extra workers on the payroll, just in case you need them. You move heaven and earth. Intel knows how to do this. On the other hand, if the market for those chips looks like it might be softening, then maybe you don't push so hard. And blaming it on "labor shortages" is a very plausible excuse. And investors will believe it, until it becomes a pattern, because they want to believe it. No one wants the cycle to be over. A pushout is a pushout. Caveat: it's not yet a pattern, as far as I know. But it behooves us to be watching very, very carefully, and notice when it does become a pattern.