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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: Nhiem Nguyen who wrote (2090)	11/16/1997 11:39:00 AM
From: Larry Brew	Respond to of 6180

Hi Nhiem, << market competition >> TI's clear advantage. The new .25u and below fab was cash. Only intel could do the same. Without needing to debt the construction, TI will have a strong pricing advantage. IMHO. At 1b per fab I see this as a significant advantage. Nhien, reading your TI thread posts, it sounds like your back with them. :-) Larry

To: Nhiem Nguyen who wrote (2090)	11/16/1997 3:36:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 6180

>>Is EVERYONE & THEIR MOTHER stupid enough to jump into a market that has those characteristics?????<< nhiem, when everyone jumps into the business it is not a commodity. dsp is not a commodity right now. that is precisely why everyone will jump in. in case you didn't know, it is very expensive to ramp up production. it takes planing and time. like one japanese businessman said, "building a fab is like getting a haircut. you don't stop halfway through." when everyone planned to get into dram IT WAS NOT A COMMODITY PRODUCT. NOW IT IS. everyone is bleeding money. that is what CYCLES are all about. cycles do play an important part in the business environment. >>There is a thing called competitive advantage. TXN knows how to utilize economy of scale because they own and can controll high volume manufacturing (including FABs).<< yeah, their prowess in dram is legendary. they were an abject weak sister in dram. mu makes $100 million and txn loses money. not impressive, imho. txn was also losing money hand over fist last year in dram when mu was making money. >>That is NOT something that EVERYONE and THEIR MOTHER can do. May be a handful, but not EVERYONE.<< i hope this doesn't provide you a lot of confidence. EVERYONE doesn't make dram, either. even so, nobody is making any money in dram...