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

To: Gary Ku who wrote (610)	12/14/1997 6:40:00 PM
From: Jumpin Joe	Read Replies (2) \| Respond to of 1853

Gary, I suspect you have the exact same sources I have, if you have an internet browser. The U.S. economy is "booming" and has been for some time. However, a booming economy is no reason to buy any stock. Companies go bankrupt in both good and bad economies. I agree, Korea and Asia, in general, do not control the world economy, but many international corporations are looking to Asia for a major portion of their growth over the next decade (I work for one of them). Many companies are valued "high" relative to historic values partially due to this expected growth. If it does not materialize or does not materialize as fast as anticipated, there will be "market corrections" as we are now seeing in the tech. sector. The potential collapse of the Korean economy and others in Asia is much higher now than 6 months ago and the markets recognize these higher risks (I'm not saying it will happen, I am saying there is a greater probability than a few months ago). Additionally, one of the "bitter pills (for Korea and other Asian economies that are in trouble) to swallow" is slower economic growth. The overall effect on the U.S. and other economies is unclear at this time. So at this point, investing in companies that expect high revenue and earnings growth out of Asia represents a higher level of risk/uncertainty than it did six months ago. We all have to judge by our own criteria if the risk/reward ratio is favorable or not. Overall, what does TSEMF have relative to technology, production capabilities etc... that gives it a better chance of success vs. the numerous other semiconductor companies out there? What is its edge over the competition? How much of their revenue comes from Asia, Europe, the U.S.? Besides a price you perceive as low, why should someone invest in TSEMF? These are just a few of the questions I would ask before I buy TSEMF's (or any companies) stock. Remember, until a stock hits $0/sh, it can always go lower. However, in TSEMF's case, $5.56/sh in cash will definetly put a floor under its stock price in the short term. JJ