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

To: TREND1 who wrote (2251)	11/30/1997 12:12:00 PM
From: Ardner Cheshire, Jr.	Respond to of 6180

Larry, I agree that the "tape" will tell us where TXN and MU have been and where they are at any moment, though I question whether anyone can consistently foretell future stock movement based on the charts. What I think may happen based on worldwide deflationary pressures is that many, if not most, companies will experience a slow down in revenue growth and/or profit margins during 1998. This will particularly be true of companies in quasi commodity businesses. This slow down in growth will eventually lead to a lowering of P/E ratios (this contraction has already begun to occur, I think). The overall effect will probably not be a bear market in equities, but simply a slow down in year-over-year increases in stock prices. Regarding TXN, isn't the issue the extent to which its DSP business is proprietary and can make up for losses in the DRAM area?