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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sixty2nds who wrote (27049)	11/21/2005 2:09:41 PM
From: sixty2nds	Respond to of 95735

13:46 FLSH M-Systems: Hambrecht comments on FLSH downgrade (28.63 -3.53) -Update- WR Hambrecht comments on a competitor's downgrade of FLSH after the Intel/Micron deal was announced, which was expected. The competitor indicated that Intel's entrance into the NAND market should imply that Intel will aggressively enter the market for NAND flash for handsets and that it will cut into MDOC revenues. Firm makes the following observations: 1) firm believes that while Intel is going to use the NAND flash from its JV to enter the handset market, it currently is at a disadvantage as it does not have a MDOC-like product that can compete with FLSH; 2) firm believes that investors are too focused on MDOC as a complete product to the handset industry, since it is a very small part of the overall size of the handset market; and 3) Intel has already missed the 2006 design season for handsets for NAND flash, thus firm does not expect Intel to be a major competitor in this market in 2006. Finally, firm does not rule out the possibility that Intel could take a license from FLSH on the MDOC, similar to the way Toshiba currently does, which would result in royalty payments from FLSH if this occurs. Overall, firm expects that in 2006 FLSH will sign a deal with MU-INTC to supply it NAND flash under a formal supply agreement.