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Technology Stocks : KLA-Tencor Corporation (KLAC) -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (873)	1/4/1998 9:51:00 PM
From: semi2000	Respond to of 1779

Jacob, Apart from short term and near future price predictions, >Fundamentals are still bad. With the Korea debacle, governments (or if not them, then the IMF) are not going to let banks lend money to semi companies to buy equipment to pursue market share regardless of cost. Isn't Hyundai(sp?), Samsung, LG Semicon are the biggest conglomorates which employ 100s of thousnads of people and probably a trickle down effect of it keeps millions in work? If that is so, inspite diffculties of debt - the bread and butter is the business. Hence how can they stay away too far from it? Since KLA is yield management company it should be in demand especially with lesser resources? Regarding cash flow: Your statement sounds idealistic. Please explain more. All above three companies are conglomorates - which means cash flow analysis is next to impossible for an outsider. They have foreign plants means with depreciated won they may bring back more won and depreciate bigger assets in terms of won. If Korean semi companies and other sectors ARE NOT capacity limited then they can take benifit of weak won to increase their exports. Hyundai has said in media that they WILL NOT decrease price of Hyundai becase it gives a feeling of buying a cheap (quality) product. Agree water is muddy. But when is it clean sailing? Timing is everything in my opinion - that is if you can predict it! IMO, KLA has technology which AMAT doesn't have (slightly with opal and orbot may be) and has great prospects for long term. Treating these companies like mutual funds is probably easy to digest ups and downs. All my opinions only. I have long position in KLAC and AMAT. Regards,

To: Jacob Snyder who wrote (873)	1/4/1998 11:14:00 PM
From: John Chalker	Read Replies (1) \| Respond to of 1779

Jacob, Please remember that the market is a future pricing mechanism. It doesn't price in today's factors, it tries to price what it believes will be tomorrow's (6-9 months) factors. With 16 Mb DRAM prices under $3, they obviously are pretty close to a bottom. And all the uncertainty of Asia has been priced into the market for months. In fact, given how emotional, panic selling can be much stronger than panic buying, I'd propose that the market has overreacted to this industry and driven the stocks to undervalued levels; especially if one looks out 12 months in the future. Chalks