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Technology Stocks : CRUS, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Synapsid who wrote (5868)	5/25/1998 10:41:00 PM
From: ted quinn	Respond to of 8193

'Sid, You (and Frank) seem to the most knowledgeable about the company and industry. After reading Frank's and your analysis, I just don't see what hope there is for CRUS in its present configuration. It is like a cook with too many pots on the boil. They focus on all-in-one system on chip, they drop the ball with storage. They totally miss the growth in LAN/WAN/router-type communication chips the past few years. Their modem chip business is a joke--puny margins, few sizeable customers. I could go on and on. My point is that the company cannot be effective (and they have proven it the last 3 years) with so many lines. As someone on Yahoo thread pointed out, they have no synergy between divisions or lines (or not enough to be useful). As soon as they get a new customer in one area, they lose a customer in another. Revenues are shrinking, which is of course a death knell for tech stocks. They can't compete effectively with IBM, TI and Lucent. They are taking a bath on the fabs--$50 million a year, more than they earn! They don't have a big enough market share in any market they compete in. Don't you agree that they HAVE TO sell off some divisions (even if they boot this mgmt out on the street) or even break-up the company? Seems like every quarter they have to come up with a new slogan to describe what their company does. The message is very muddled, and the execution is incompetent at best.