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

To: Synapsid who wrote (5905)	6/7/1998 12:01:00 AM
From: ted quinn	Read Replies (2) \| Respond to of 8193

Hey Sid & Calvin & others, I'm having trouble figuring out how Crus can pull out of its downward spiral. It has all this expensive fab capacity that is severely underutilized as crus is selling far fewer chips than they planned for (i.e. the fab JVs deals were struck when they "owned" the graphics chip market, now gone, gone, gone). They are only about 8 months from taking another $50 million fab writeoff. (Foundry capacity is going for a song now, with Taiwan at 80% of capacity.) What's more, their most recent product offerings have been quite low-priced and would need tremendous volume just to earn a decent return. I cannot figure this company out. And now they have the "King of Shrink-Wrapping" on board (Board). What will he contribute besides being a source of ribbing around the board table because of the $40 million bath he took on the stock?