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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (10575)	12/11/1997 11:27:00 PM
From: Moonray	Respond to of 22053

General Commentary How appropriate that the movie "Titanic" is being released next week, as what once appeared to be an unsinkable tech sector broke apart after running into an Asian iceberg... Its latest victims were Kulicke & Soffa and Lattice Semiconductor. The former announced that third quarter earnings would fall shy of estimates, while the latter indicated that its sole distributor in Korea had gone out of business... More stocks in the chip and chip equipment industries are likely to experience earnings difficulties given that the Asian region accounts for nearly 50% of all semiconductor sales... It should also be noted that Korea produces roughly 1/3 of the world's memory chips... With the Korean won having dropped by nearly 50% since October, memory chip prices will continue to decline putting serious pressure on Micron Technology and (to a lesser degree) Texas Instruments. Street finally reaching the conclusion that Asian turmoil will also have an adverse impact on PC sales... Not surprising in light of the fact that Asia accounts for about 25% of all PC sales... Hewlett-Packard and Compaq are likely to be hit the hardest... Dell's concentration on corporate desktops and its minimal exposure to the region should insulate it from the difficulties encountered by others... In fact, the company (as well as the other PC makers) stands to benefit from lower component costs... However, Dell is vulnerable is to a potential slowdown in capital spending by large multinational companies experiencing earnings contractions due, in part, to the Asian contagion. In sum, there was nothing in Thursday's session to alter our bearish outlook... While we wouldn't be surprised if the market attempted a recovery rally in today's trading, the deteriorating technical and fundamental underpinnings suggest that there is plenty of room left on the downside. briefing.com I get your point about there being 3COM stuff in the ITU standard, if a flex modem needs to be modified. o~~~ O