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Technology Stocks : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: Woody_Nickels who wrote (2058)	11/27/1997 6:43:00 AM
From: MoonBrother	Read Replies (2) \| Respond to of 9582

If I remember correctly, Lehman said USC now has about 20mil sales a month, 10mil profit, which translates to ALSC's portion of 2mil, or 5c a month. The qtrly profit from USC should be around 15c. The USC part is certainly looking good. The problem is that ALSC's own business condition keeps getting worse. We know that DRAM price has hit historically low. ALSC seems having trouble to make any profit on selling DRAM. Now that reports just came out that in Asia market the prices for both SRAM and flash memory have started tumbling. The motherboard (SRAM) demand for Nov. is about 30% lower than that of Oct's. This is really terrible situation, 'cuz we know SRAM and flash memory count for the rest 50% - 60% of ALSC's business besides DRAM's 40%. Now looks like Alliance will have trouble to find any of its product to make a profit. That is really hopeless! I also talked to Alliance IR Janine Zannise. She basiclly said that there have been no change in Alliance's business since we talked at the end of Oct. She said they are still looking for a moderate improvement of sales over Q3. But when I ask her how they can survive from the dramatic price drop in all these DRAM, SRAM and flesh memory, she seemed having no clue what so ever. I have desided to hold off my last doubling order for now. I still hold several thousand shares of ALSC. I will wait at least until Q4's figure came out, and see how ALSC can survive at these price levels. If ALSC can break even (as Janine mumbled) then I will buy more shares again. BTW, she did mention that backlog for March qtr is good. She dosen't know when USC will do IPO. Good luck! MB