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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (14195)	1/6/1998 12:29:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Michael Murphy, editor of the California Technology Stock Newsletter, is very bullish on equipment stocks for '98. A must-read for all AMATers and equipment shareholders in general. Answers his favoritesector is the equipment arena and also talks about how "lazy" Wall Street is when it comes to technology. Says "90% of analysts are still covering the old economies, either the mas-production economy, or older industrial economy." And says for this reason, there are huge opportunities for individual investors, something we here at SI already knew. members.aol.com Excerpt: Q. The technology sector finished 1997 down nearly 14 percent from its yearly high. Do you think that presents an opportunity? A. Yes. I take very seriously what's going on in the Far East, but I think Wall Street's got it backward. The companies that are hurt the most are those that depend on consumer sales there - soft-drink companies, tennis shoe companies, airlines. The effect on technology is rather limited. Yet that has been one of the groups that has been devastated by Wall Street. Q. Why? A. Wall Street looks and says: ''Gee, there are problems in the Far East. Who does business in the Far East? Let's sell their stock.'' A lot of semiconductor companies, for example, make chips here, ship them to the Far East to be assembled and then they come back into the United States and are put into computer or communication systems. ÿ ÿ But why would it hurt these semiconductor companies to have these countries' currencies collapse? After all, production costs are lowered. ÿ ÿ ÿ Of course, semiconductor equipment companies do sell a lot of equipment to Korean and Japanese semiconductor manufacturers. But think for a second about how you would get yourself out of this mess if you were in one of these countries. You would not build ships and automobiles and tennis shoes. That's where the excesses are. Instead, you'll focus on businesses with double-digit growth. That's basically technology; there's nothing else growing that fast.