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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant? -- Ignore unavailable to you. Want to Upgrade?

To: Maverick who wrote (2823)	12/20/1997 12:09:00 AM
From: Scotsman	Read Replies (1) \| Respond to of 4697

So what does this mean? As posted before, the drop in Asian currencies will suppress any future expansion. But this could mean that demand will catch up faster than supply. An oddball opinion perhaps, but if the number of fabs is decreased, than the world demand will have to be supplied by the current number. Since world demand may ( and its a big maybe) be fairly constant, than supply will tighten. And hence, so will wafer prices. If there were umpteen million fabs out there competing for market, wafer prices would be squeezed out the whazoo. So I think this could, in a perverse manner, be good in the long run. Not to mention that the fabs that survive would be in better financial shape. Contrary opinions welcome.