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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (10287)	6/9/2004 8:32:09 AM
From: Proud_Infidel	Respond to of 25522

You can't win. If they don't increase capex, demand is weak. If they do, it's a sign of a top?!?! That was the first hike in years! With demand outstripping supply, TSMC is also considering hiking its US$2 billion capital spending budget, which was increased from US$1.2 billion last year. Goldman Sachs analyst Donald Lu, who expects TSMC and UMC's business to remain strong throughout 2004 before easing in 2005, said the capital expenditure hike was a bad sign, however. "Historically, investors have often become cautious when TSMC's capex growth peaks, so TSMC shares and its capex have peaked at approximately the same time in the last few cycles," Lu said in his report downgrading the issue.