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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Alan Gallaspy who wrote (3243)	10/31/1997 8:10:00 PM
From: Sam Citron	Respond to of 10921

Alan, When I questioned semi engineer, who is much more knowledgeable than I about these tools, whether Tessera posed much of a competitive threat to KLIC, he replied: techstocks.com I do not know the extent to which semi engineer may be biased by a long position in KLIC that is likely under water. One week he professes to believe KLIC is going to 60 next year (recently revised downward from 100). Then he says he plans to bail out at 26. So I really can't figure him out. My understanding is that wire bonders will become dinosaurs in 4 or 5 years as a result of technologies like flip chips and Tessera's packaging innovations. In the meantime, KLIC intends to milk the mature wire bonder cash cow for all it's worth, while attempting to make a transition to the perceived advantageous consumables market. KLIC also has a JV with Delco to bump other people's chips, but it gave up on trying to produce and sell chip bumping equipment. I regard KLIC as very risky long term (although they are probably oversold short term) and think that Tessera will do extremely well licensing their technology in the same manner as Rambus has done. Good luck! SC