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

To: bobs10 who wrote (3411)	2/18/2008 11:55:27 AM
From: Pam	Respond to of 4590

With the shakeout in the HD DVD finally happening Toshiba is going to have a lot of costs associated with the dismantling of their HD DVD business. On the contrary, the street will reward Toshiba for this move and it was widely anticipated. They were losing money in this business and this will improve their earnings picture by about 50B yen in 2008 and 2009! Further, in a recession one would expect the HDTV business to take a big hit as putting off that sort of cost is a no brainer for someone cash strapped. All in all I expect companies are going to be getting a lot more conservative on the CAPEX front in all areas, especially those areas losing money. I do not know which company you are referring to as cash strapped but Toshiba is hardly cash strapped and they have stable and good CFs. Above all, HD-DVD business is a drop in the bucket for Toshiba. Yes, it is humiliating that they lost to Sony but almost an non-event when it comes to financial impact.