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

To: virgil vancleave who wrote (551)	12/5/1997 2:19:00 PM
From: Gary Ku	Read Replies (1) \| Respond to of 1853

If WS(Wall Street) is always out-smart us, how could we make money? We have to do our research carefully and trust our judgment to beat the WS.

To: virgil vancleave who wrote (551)	12/6/1997 8:26:00 AM
From: Omer Shvili	Read Replies (1) \| Respond to of 1853

Virgil, TSEMF does seem undervalued at this price (and I do own some shares), but one must be very cautious, especially in this business. In your post you wrote Tower had never been unprofitable. Well, that's not the case. Since its public offering they have allways been profitable, but before they went public (back when they were called National Semi. Israel) they had some tough years, and they almost went banckrupt. That's when new investors bought the company from the then strugling NSM, and turned the company around (with the help of a strong market in the following years). I believe TSEMF's management team is a very good one, and the fact that they didn't lose money last year proves that, but there are several things that bother me : 1. The new fab - Tower hasn't received the grants it wanted, yet. Time is very important here, and if they don't start building soon, they'll have a technological gap to close. Working with '6 wafers means lower margins. This is a very critical issue, and I hope Tower starts building this new fab soon. 2. There is a capacity problem in the market (this has happened before). But this time there is also a crysis in the far-east, and this will probably have an affect on the demand side of the equation, which could mean this capacity problem will not go away so fast. 3. Tower now has a design center (that's good for future business, new products based on proprietary technology), but this means higher costs for the company. This won't help margins in the coming year. 1998 doesn't look that promissing for Tower, but I hope that by late '98 Tower will show growth again. The January affect could help the stock, but I believe it will only be a short term bounce in the price. I'll post more in-depth reports regarding Tower at ariga.com after I talk with Mr. Nissan Cohen in the coming days.

To: virgil vancleave who wrote (551)	12/6/1997 1:35:00 PM
From: Robert Florin	Respond to of 1853

question.... will the january affect help this one? i think so. It would seem so. I think that the tech sector in general will see end of year tax loss selling, so as a sector it will see the "Jan effect". Those companies most annihilated by disappointments and selling near their lows will have a nice Jan. IMO, time to buy TSEMF is the week of Dec 23 and after.