Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: All Mtn Ski who wrote (3116)	3/10/1998 1:32:00 PM
From: Debt Free	Read Replies (1) \| Respond to of 4697

Tom, Your note states the following: MEMC has the ability to increase the price of silicon wafer "during the good times" when customers request a change (tighter) specification that requires additional cost on our part. So, we do have the ability to increase price when the wafer market is in better equilibrium. It would be interesting to know when MEMC things the "Good Times" will return.

To: All Mtn Ski who wrote (3116)	3/11/1998 2:38:00 PM
From: Technology Investor	Read Replies (1) \| Respond to of 4697

I read between the PR lines and see "we cannot hold prices in a glut and our contracts are worthless". WFR's losses show that there are no margins in this supply glut, and there is no end in sight. Japan is seeing negative semi growth and lacks the courage to restructure its banking sector, Korea still has huge short-term debt hurdles, and SE Asia is chaos. The U.S. remains the market of last resort, but how long can we do it alone? Europe's slow recovery cannot absorb it, either. I take no joy in my "Wall" prediction of last fall, but I think we can all agree the industry hit that wall by building too much capacity. Some of that capacity has to leave the market AND demand has to grow for a recovery. You gotta wonder how long the Germans want to hold onto what's becoming an indebted, cash poor commodity producer. Look at the balance sheet - deteriorating. The sale of Ethyl is a bailing action. Someone asked if it could get worse - yes, clearly. They built too much too late in the cycle. In spite of the signs of spring, this bear is in cash and going back into hibernation! Sorry, Doug.