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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: shane forbes who wrote (4574)	1/24/1998 6:37:00 PM
From: John Chalker	Read Replies (1) \| Respond to of 10921

<< Their argument - mass overcapacity is crushing ASPs. Which makes eminent sense to me. BUT only in certain segments. >> I'd like to put my two cents in here and take INTC as an example. They continually cut prices. And for the last year, they have been unusually aggressive in price cuts. Why? Do AMD and Cyrix really make that many chips that there is overcapacity. I think not. I believe that INTC is using financial and manufacturing muscle to pressure AMD and Cyrix financially. To weaken them to the point that they can't afford to stay in the game. Either to drop out by hook or crook. Look at AMD's stock price and note that Moody's has them rated as a junk bond and on creditwatch with negative implications. AMD is now attempting to move the K6 from 0.35 to 0.25 micron process before they have solved their yield problems. Doesn't this sound like a company that's in trouble? The result of financial pressures? The result of lower chip prices brought about by a strong competitior? Sounds plausible to me. Time will tell. You can be assured that DRAM competitors will try to take advantage of Korean/Japanese weakness to increase their market share. Wouldn't you? Or would you write them a check to help them out?? Yeah, sure.! Chalks