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Technology Stocks : Spansion Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (711)	11/9/2006 3:37:27 PM
From: BUGGI-WO	Read Replies (1) \| Respond to of 4590

@Biomaven - Intel I agree, that at some price, they could sell it or differently spoken, someone will buy it. But it seems, that Intel wants to use old depreciated equip. for manufac. in NOR. So you either throw this stuff away or sell it (like AMD). The problem is who wants to buy? When you ask me, it could be only STM or Samsung. STM is loosing money too and I can't imagine, that they are very keen - I really don't believe this now. Samsung would be a possible match just because they could use this NOR for their own handsets. But why not increase your own possibilties - Samsung has MUCH MUCH money. The only reason is, that they have to put serious money at this stuff and why, when you could buy it cheap elsewhere. In the end, I always come to one conclusion. The market needs better prices and thats the way we saw and we will see in the next quarters. Intel could give loose 100Mio. per quarter, no question, but the analysts and stockholders aren't that excited - thats clear. STM isn't in a great shape and the rest is doing some small things, mostly with foundrys, so they could switch back orders. In the end, the real battle for marketshare with depressed prices are over and I said this too in the past. At the time Spansion was a AMD thing and Intel could HIDE NOR looses, they sold NOR parts below value just because they could hit AMD very easily and very very effective - we have seen this. Call me paranoid, but after AMD (partly) sold SPSN and Intel shows NOR in the P&L, the reaction from Intel itself changed. This was imho the MAIN driver for such LOW LOW ASPs and small revenues which lead to HUGE losses. (Keep in mind, that when Intel sells parts at deep discounts, Spansion/STM has to react, they have to do the same) We are now at the beginning of a recovery mode in which prices will rise. Depends on market demand but they will rise even further - I'm "sure". I could easily imagine 10-20% (as written), if demand comes in very strong, 30-50% at some parts isn't out of reach and quiet "normal" in the business. You could do the math by your own, what this means for Spansion ... BUGGI

To: Biomaven who wrote (711)	11/10/2006 6:36:00 AM
From: brushwud	Read Replies (2) \| Respond to of 4590

Is Intel really just going to keep losing $400m a year plus the capex required to keep competitive? There has to be some turnaround plan, and a firesale makes most sense. Wasn't that also true last year and the year before? Their loss this year is overbudget, but I'm confident they can succeed in getting NOR losses back below $200M/year. The trouble is, we may be going back to not knowing exactly how badly they're doing in NOR. According to their 10-Q, "The Flash Memory Group operating segment includes NOR flash memory products designed for cellular phones and embedded form factors, and NAND flash memory products manufactured by IMFT that are designed for digital audio players and memory cards."