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

To: Z Analyzer who wrote (6118)	12/5/1997 9:24:00 AM
From: Dale J.	Respond to of 9124

Look how TI aggressively responded after an analyst from ML downgraded Texas Instruments and other semi's. I'm not advocating qntm respond to every market or stock movement, but at this point a few comments would be more than warranted. DALLAS--Texas Instruments (TXN) said it expects the global chip market to show improved growth in 1998 and downplayed concerns over memory chip prices and end-market demand. Vladi Catto, TI's chief economist, said the economic crisis in Asia would help the semiconductor industry in 1998 because South Korean producers will be forced to scale back their plans for capacity expansion. "All in all, I think that, as we look at the semiconductor market, we still see growth...in 1998 stronger than it is in 1997," he told Reuters. Catto saw no evidence of slowing demand in end markets such as personal computers, wireless, and networking. "I don't see a deceleration in the growth of the end markets," he said. The U.S. economy should remain strong in 1998, with European economies doing better than in 1997. The economies of the Asia-Pacific region also should continue growing. "With the economies in 1998 stronger than they were in 1997, we see the [global] end equipment markets in 1998 at least as strong as they were in 1997," Catto said. Catto cited what he called "misunderstanding" by investors about the impact of Asia's economic crisis on the semiconductor industry as the root of current concerns about the chip sector. "It seems to me the financial markets are interpreting the current situation exactly the wrong way," Catto said. South Korean producers--led by chip industry heavyweight Samsung--would be forced to cut back investment plans because the country's economic woes were hurting their ability to raise money for expansion. "The end result of all of this will be heavy cutbacks in Korea's capital spending plans, which in turn will benefit companies like TI simply because they will bring about an equilibrium between demand and supply quicker than anticipated," he said.