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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (51329)	8/31/2001 9:30:47 AM
From: Dr. Mitchell R. White	Read Replies (1) \| Respond to of 70976

Well, Brian, it looks like the children are being taken off the street. With Toshiba "surprising" the investment community, I bet we're not far from hearing about significant capacity "adjustments" (= fab closings) around the industry. Discussions of mergers, etc. is all part of that. Remember when TwinStar (TI JV, with Hyundai, right?) closed in north Texas? TI's partner sold out to TI for cents on the dollar, and then TI sold out of memory to Micron. Value of the two fabs sold by TI was over $2 billion, MU got them for $950 million. And TI floated $700 million in commercial paper to MU to make it happen! Meaning that for a while, MU had acquired a $2 billion asset for $250 million. So they could afford to take a competitor's fab off-line and mothball it. Capacity rectification at its finest. We'll see more such deals this time around, I bet. Mitch

To: Proud_Infidel who wrote (51329)	8/31/2001 2:33:20 PM
From: Paul V.	Read Replies (1) \| Respond to of 70976

Brian, Gottfried, Jacob, Katherine, threaders, Didn't CSCO store the excess inventory it purchased from JDSU on the property of JDSU. I believe i read that somewhere. This provided CSCO the opportunity to write off the JDSU inventory and buy it back at a lower cost. Include this fact and the fact that CSCO has reduced it inventory by 25%, IMO, this should be good for JDSU if a portion of the CSCO's inventory they have stored on site. My question is when can we expect JDSU to eliminate its excess inventory and begin to increase production? Does anyone know how JDSU play in the production cycle with CSCO, AMAT, LU, NT, etc.? I have bought some JDSU and am trying to decide when I cane expect production to turn up. Just my opinion. Paul