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

To: THE WATSONYOUTH who wrote (3349)	2/13/2008 8:48:20 AM
From: Pam	Respond to of 4590

What about Numonyx? Will it be able to continue to stomach the combined losses of both companies? I guess there will be economies of scale.....but enough to even break even?? Just hard to believe. What do you think? Seems to me if Samsung is willing to absorb big losses in NOR, then either Numonyx and or SPSN are in big trouble. This memory stuff is just brutal. How many semiconductor companies have you seen go outright belly up? I am sure you can find a few but look around and you will find plenty of them that have not performed and have not made any money for their shareholders for years (with some profitable quarters in between) and yet continue to remain in business, employing people and serving their customers, but absolutely nothing for their investors unless you buy and sell and make some money from short term fluctuations in their share prices! Numonyx, if it is spun off just like Spansion was, it will have the same fate as I described above and eventually get acquired by some conglomerate in semiconductor business with deep pockets. The bottom line is some players have to either fold up or cutback production for the industry to be healthy and profitable again! Samsung is ruthless and if they see a weak landscape they will attack even if they have to lose money for several quarters. I do not know much about Samsung's NOR business but I notice that they are grabbing Numonyx's market share at a faster rate than Spansion is, partly because they are starting from a smaller base. But you are right, memory business is brutal and there are few winners, if any.