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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: t4texas who wrote (8249)	11/27/2001 1:01:00 PM
From: James C. Mc Gowan	Read Replies (1) \| Respond to of 99280

2-4 Texas: re: Taiwan Semi; govt is largest holder of Taiwan Semi shares; that is a very interesting view, i.e. government laying off risk, in obvious downturn, that they can clearly see, to US Brokers. My WAG is that the quid pro quo went something like this; GS: we will take $330 million in shares off your hands, even though our own research division sees continued semicon weakness; then, you will have cash to invest in the Mainland, as you desire. Of course, we would like you to reverse your dismal forecast for at least the current quarter, so we can unload some of the shares, or, at least, use the news release to pump up the semis, in order to allow us to get out of INTC et al. at higher prices, on the semi rally your news release will create. Thank you very much. BTW: GS gets a discount price when it buys in size, as the articles indicate, we don't know how much Also, Taiwan doesn't have to say precisely what the 'great new order flow' is or where it's coming from, so no way to verify accuracy of new projections. Only two months ago, a rather dismal forward guidance, now everythings looking up, but as Zeev pointed out, the numbers don't add up. I used to trade in the Asian markets in early 90's and I recall that the governments do 'dabble' in their own markets. This would explain the opportunity for manipulation, as well. James