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

To: etchmeister who wrote (5515)	7/23/2006 10:34:03 PM
From: wasWoody_Nickels	Read Replies (2) \| Respond to of 5867

The majority of SCEs can make money even in a downturn, but usually they layoff heads, and take accompanying charges. It depends on how bad things get, just how radical the layoffs get. Alot of the small caps DO lose money in downturns, and the mid and large cap SCEs also may have several negative qtrs, if they are not nimble, or are reluctant to downsize headcount. Look at SUNW to see an example of what a company does in a downturn, when it refuses to cutback workforce. Lam survived the last downturn well, with layoffs and their new outsourcing strategy. During the rampup from '02-'03 lows, the efficiency of Lam's workforce was key to their success. Much of their manufacturing is out- sourced and doesn't show on Lam's balance sheet, except as costs. No benefits, and other 'people' overhead to eat into profits. But the analysts were very slow to recognize Lam's new 'lean and mean' production abilities, as shown by Lam's P/E lagging for many qtrs near 10, while other SCEs were >20. Now if we can get the 'options as compensation' monster under control, life should be much better. In the mean time, energy prices and interest rate hikes will be prime movers and may tip the economy over. IMHO energy prices are already excessive, and the FRB is on shaky ground after a record number of hikes. JMHO. Don't take any... Woody Nickels