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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (67264)	1/19/2001 12:47:43 PM
From: Doug	Respond to of 99985

L.H: The most stable sector of the high tech market has been the PLD's . These 1m gate chips are found every where from autos, appliances, Communications, etc etc. This sector is fairly resilient. This year for the first time the Sector has reported 6 mths of Inventory build up. That means for atleast a year we should see a big slow down in capital spending. Capital investment in the I.T sector peaked in 99/00 and is on a downtrend. In the old economy, the purpose of any acquisition was to cut back competition and gain a Monopoly. Purchase accounting was in vogue. In the new Economy, Pool accounting was the order of the day. To maintain share value , production had to be ramped up to maintain rev/share. vendor financing was used to lure buyers. That money has now to be accounted for. This is further compounded by the fact that there is increasing competition for a shrinking pie.