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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (10932)	2/8/2001 11:51:41 PM
From: Logain Ablar	Respond to of 30051

Sam: Below is an exerpt from B. Flecks wrap (yesterday). From what I've read on CSCO (I won't be able to listen to the cc till this weekend) with the inventory issue I can see how flash is now being pushed out. While Cisco is not going to have much growth sequentially for the next couple of quarters, and it is expensive, there will be bigger problems in other places. The companies that supply Cisco are going to be directly impacted as Cisco tries to work down its inventories. These companies also have their own inventories in their balance sheets, as do the contract manufacturers. The suppliers I'm talking about, the chip companies like Xilinx (XLNX) and Altera (ALTR), are in a world of hurt, as are many other companies. For instance, most people tend to think of Micron (MU) when they think of the PC business, but DRAM and all forms of memory will be impacted by the necessary inventory reductions at Cisco. So problems will continue to back up the food chain. We have an inventory problem across all niches in technology that is going from bad to worse. In my opinion this is not going to be fixed in time for the fabled second-half recovery.