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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 (5699)	6/5/1998 9:20:00 AM
From: Clarksterh	Read Replies (2) \| Respond to of 10921

Shane - cutbacks by the big 3 in Korea on DRAM output may bring good times back to the semi-equips IF it is sustainable. How do you figure? In order for DRAM companies to order lots of new equipment from AMAT they need not only to have a recovery in prices, but also a shortage of capacity. But the very act of cutting back means that they will have excess capacity in reserve. Good news for MU does not always mean good news for AMAT. BTW - I don't necessarily think that the AMAT recovery is predicated on a memory price stabilization. Although several years ago they were more than 50% of the semi-equ market, they are now down to 25% (ref: last Lam and Mattson conference calls). Clark