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

To: BUGGI-WO who wrote (712)	11/9/2006 4:33:19 PM
From: Biomaven	Read Replies (1) \| Respond to of 4590

The key for me is that nobody else in the industry beside SPSN appears to be committing substantial resources to NOR. If that trend continues, it will inevitably mean that SPSN will come to dominate the market and pricing pressure will cease. If you also look at what SPSN believes they can do with their margins on the COGS side even with normal pricing, that is a recipe for very high earnings. So, in some sense, the long-term threat to NOR from Samsung (whether via NAND or via some competing technology) is a good thing in the medium term. It scares other players from committing to heavy capex. The bottom line for me is that SPSN is likely to make a lot of money in the next year or so. How that translates into a stock price is a little less clear, because the market may be worried by the perceived long-term threat from competing technologies - nobody wants to be left holding horse-and-buggy stocks at the end of the day. But I see SPSN stock as a solid performer over the next year at least. Peter