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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (5071)	7/22/2004 3:05:17 PM
From: Cary Salsberg	Read Replies (1) \| Respond to of 5867

RE: "...surplus inventories..." I have read many balance sheets and seen many "inventory" line items, but I don't recall a "surplus inventory" line item. Maybe, someone can tell me what "surplus inventory" is. Is it "written down" inventory?

To: Proud_Infidel who wrote (5071)	7/22/2004 3:21:04 PM
From: Kirk ©	Respond to of 5867

Nice catch... absurd thinking... "Failure to cut back production despite surprisingly weak sales in June led surplus inventories to swell to $827 million by the end of the second quarter from just $12 million three months earlier, research firm iSuppli Corp. reported." and "Moreover, the problem is not nearly as severe as three years ago. Chip inventory levels peaked at $13 billion in the first quarter of 2001, in a miscalculation of demand." It is NORMAL for inventory to increase once you have healthy production. I heard the trouble was "triple bookings" so lets assume the $13B was "only $4B" in real orders... still about 5 times the current $827M level, but bears watching.