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Technology Stocks : CYPRESS Semiconductor (CY) -- Ignore unavailable to you. Want to Upgrade?

To: Frank Povoski who wrote (1466)	10/26/1997 2:09:00 PM
From: jelrod3	Respond to of 2694

A point to remember about chip stocks in general, both DRAM and SRAM, is excess production capacity of significant proportions that heretofore did not exist in the "semiconductor cycle." This capacity will affect prices, which in turn will affect profits, which in turn will affect share prices for COMMODITY chip suppliers. This includes CY. Until some of this capacity dries up, the story is not going to improve remarkably. The exception is "specialty" chip makers, like LSI Logic, whose ASIC's should do well going forward. From an article in the WSJ: "Asian chip companies, he believes, have built up too much production capacity. The glut of equipment will likely reduce demand for the sophisticated semiconductor gear from KLA-Tencor, Applied Materials and others within the next six to 12 months, he predicted. "We've overspent," he said. "There's too much capacity out there." What this means is that there is too much chip making equipment sitting around churning out chips, not only in Asia, but all over the world. While Asian suppliers may not be able to get away with dumping, the prices in the market place as a whole will be depressed, thus depressing profits, and you know the rest of the story. This will change (hopefully, but do not look for a dramatic upturn in the cycle as in times past, at least for commodity suppliers.

To: Frank Povoski who wrote (1466)	10/26/1997 5:44:00 PM
From: Crossy	Respond to of 2694

Frank, the tone of Your post is self-evident - and not a friendly one. Apart from this I would like to stress that I didn't mean CY to hit $4 or so soon. Only if support of $8 is not held- which I don't feel likely - it had a chance to get hit even more. That is my opinion (!!) and I reserve my right to post it here. Sorry but I don't like cheerleading. Not even in those issues I'm currently long.. regards CROSSY