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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: marc ultra who wrote (48331)	6/19/2010 7:52:03 PM
From: Kirk ©	Respond to of 95406

Agree. Also, if you double wages in China from $300, to $600 so they don't get depressed and jump off buildings to their deaths... they are not going to buy new homes, GM autos or huge HDTVs to share in their little dorm rooms... but they can buy the latest hand held video game, cell phone maybe a small internet TV... maybe an iPad or Netbook but only after they buy their $150 Addidas World Cup "football" or knockoff jersey.

To: marc ultra who wrote (48331)	6/21/2010 3:51:30 AM
From: marc ultra	2 Recommendations Read Replies (1) \| Respond to of 95406

positive triple whammy from China? We had 2 important factors in place that favored increased China domestic demand including for gadgets and other chip intensive products that could could to a degree increase the world demand for chips. These were the surging of wages in china as many threatened strikes and mediation agreements have recently led to significant wage gains. The second one was China's new 5 year plan where apparently the big emphasis will be on increasing domestic demand rather than just exports. Now we have perhaps the most important third factor in place with the gradual increase of the yuan. That should help US and other exports to china and be another factor in feeding China demand. I can't quantitate it or the time frame but it seems we now have a potential solid secular growth factor of accelerated China consumer demand that should further boost the general secular trend to new chip intensive gadgets and applications. We're talking a billion people and this China demand pushing the secular growth trend in chip intensive products is in turn on top of the strong cyclical upturn in chips that is still looking very strong. It makes me wonder if we're perhaps looking at some prolonged super cycle that at the very least will frustrate the skeptics and bears who are already seeing signs of an end to this cycle.