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

To: Mason Barge who wrote (4902)	2/20/1998 4:37:00 PM
From: Thomas DeGagne	Respond to of 10921

Adaptec's cash purchase of Symbios Logic is exactly the type of transaction that Hyundai needs. This gives them a $775M cash infusion and will allow them to focus resources on their memory fabs to remain competitive. (late addition to this post from the San Jose Mercury news: "Hyundai officials in South Korea said today the company planned to invest the money from the Symbios sale in its $1.3 billion semiconductor plant under construction in Eugene, Ore.") I see this deal as a big confidence booster for SK semi companies. I fully agree that if the Asians can't spend then American and European companies will. By Jan 1/99 we will all be wondering why everyone was so scared today.

To: Mason Barge who wrote (4902)	2/20/1998 7:36:00 PM
From: spiny norman	Read Replies (1) \| Respond to of 10921

Mason, you bring up an excellent point about the US/European equipment companies being relatively better off than their Japanese counterparts. That is another (favorable for the US) difference between this cycle and the one that bottomed in '91-92. Back then I recall that many Japanese cos. had access to capital on very favorable terms because there was huge demand for Japanese convertible debt coupled with stock warrants. (Everyone bought them because everyone knew that the Nikkei at 30,000+ was a bargain <g>) You would constantly see Japanese debt offerings with coupon rates of 1/2-2%, at a time when a US company would be paying 7-10% for their capital. Now the current corporate cost of capital is a little more even. regards, spiny