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Technology Stocks : CYPRESS Semiconductor (CY) -- Ignore unavailable to you. Want to Upgrade?

To: Trey Yon who wrote (1589)	12/13/1997 12:32:00 PM
From: Samuel R Orr	Read Replies (1) \| Respond to of 2694

Halloween has come a little late this year, Trey Yon, but we warlocks are enjoying the ride. In my infinite wisdom I just acquired some IDTI, not really certain their Pentium-like processor would make them much money, but aware our technical wizard analysts might think so. Can they build, assemble, test, and ship it? Being a masochist at heart, I placed an order early Friday for a bit more Cypress at $8 1/2, just a sixteenth away from its close. Korea's unknowns do worry me, but I am comforted by the fact Cypress hasn't yet decided to fabricate DRAMs. I wonder what the board would think of that one! Thanks for keeping me posted with the real and timely data: some months ago I stopped trying to figure out the market and buy now on "gut feel." If it works, I'm going to write a book how "Head and shoulder tops are nothing compared to the digestive system." Someday, tell me more about the Orient Express. Sam

To: Trey Yon who wrote (1589)	12/13/1997 6:38:00 PM
From: John Ritter	Respond to of 2694

< off topic > Check out EFII, down 63% Friday from 40 to 14 7/8, really sad thread. I bought some hoping to make some $ to buy more CY before it goes to eight!? Wish me luck.

To: Trey Yon who wrote (1589)	12/15/1997 10:40:00 PM
From: Trey Yon	Read Replies (1) \| Respond to of 2694

<Well here's a little positive news for broomriders with severely splintered Buttocks.> Headline: Semiconductors: Chip Price Survey Author: M. A. Gumport, CFA 1(212)526-5368/C. Gangi -3754 Rating: Company: AMD,ALSC,AVT,IDTI,INTC,IRF,LSCC,LSI,MU,NSM,PIXT,RMTR,STM,TXN,VTSS,XLNX Country: IND CUS Industry: SEMICO Today's Date : 12/12/97 ------------------------------------------------------------------------------ * WEEKLY CHIP PRICING UPDATE: DEAD CAT BOUNCE? DRAM PRICES FLATTEN. ------------------------------------------------------------------------------ DRAMs DO THE DEAD CAT BOUNCE? PRICES FLATTEN. It would be very optimistic to call this last week's action an uptick. Still, fact is that a variety of DRAM configurations, after a plunge of 20-50% during the past month, actually were flat or slightly higher during the past week. PROCESSORS: K6-233 PRICE DOWN (MORE SUPPLY); DITTO ON PRICE FOR THE PENTIUM-2- 233. As recently reported, AMD-$18 11/16-1 has resolved its yield problems on 0.35 micron parts and now is rapidly ramping its K6-233. K6-233s at $254 still sell above list in the spot market for small quantities, but prices were down 15% last week, and that seems to reflect increased supply more than any problem with demand (still seeing a very favorable reception for the part). We note the Pentium-2-233 at $383 fell 7% last week and small quantity spot prices are now slightly below listed volume prices. We think the Pentium-2 price downtick is a tit-for-tat/take this for that case of competition. OVERVIEW - STILL BAD NEWS NEAR TERM: 1) DECELERATION, 2) ASIA/PACIFIC. EXPECT TURNAROUND IN EARLY 1998 WITH ACCELERATING GROWTH THROUGH THE YEAR. We continue to see 2 short term themes: 1) Deceleration, 2) Asia/Pacific. Deceleration is apparent in NSM's ($26 3/8-1) slowdown from 40% to 8% year-over- year order growth Aug. - Nov. (or the peaking of worldwide IC unit growth at 35% last July). Asia/Pacific's impact is apparent directly in the bankruptcy of LSCC's ($55 5/16-1) key disti. in Korea and indirectly in the flood of low priced DRAMs as sales to Asia/Pacific are redirected to the U.S. With 30% of chip industry sales coming from Asia/Pacific, it might be appropriate to just take a hatchet to projections and cut them by 30-50%, but, in fact, we already have grown progressively more cautious in recent months, our projections are already near the bottom of consensus, and we feel they are generally ok with only selective, ongoing downward revisions necessary as the size and timing of the impact is more apparent. LONGER TERM: THIS IS A MAJOR BUYING OPPORTUNITY. Mexico was supposed to die a couple of years ago (and threatened U.S. health, too). The outcome has been entirely different. Now Asia/Pacific is supposed to shrivel and bring the U.S. down too. To the contrary, we believe the dramatic price/performance improvement in chips helped by renewed competition plus the takeoff of key new products (DVD) will help the industry enjoy accelerating growth throughout 1998 after a disappointing 4Q97 experience. Now is the time to sort between chip makers for those with the best longer term stories. WHILE CHIP STOCK PRICES LIKELY WILL STILL BE DECLINING SHORT TERM, NOW THROUGH EARLY 1998 APPEARS AN OPPORTUNITY TO ESTABLISH MAJOR POSITIONS AT VERY ATTRACTIVE PRICES. Disclosure Legend: A-Lehman Brothers Inc. managed or co-managed within the past three years a public offering of securities for this company. B-An employee of Lehman Brothers Inc. is a director of this company. C-Lehman Brothers Inc. makes a market in the securities of this company. G-The Lehman Brothers analyst who covers this company also has position in its securities.]