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.

Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (5659)	7/1/1998 3:24:00 PM
From: Hank Stamper	Read Replies (1) \| Respond to of 42834

OT Skeeter Bug's idea that UTEK could go into single digits. Skeets, Ohmigod! It does look like the semi-glut will last for a while yet. There is just now some initial signs of production capacity shrinkage but, we'll have to see if this turns into a real trend. Hence, until the glut turns into a real shortage, UTEK's sales will be uninspiring. So I accept the "glut" premise. But, another 2 to 3 years? The semi manufacturers don't have enough cash to last that long. As the gult continues, the manufacturers are bleeding cash. When the blood runs out, the're out of business and their production capacity goes too. Can this take 2 to 3 more years? How much blood they got, anyway? The end of the stock market mania will put downward pressure on UTEK. As long as interest rates stay low, as BB might argue, the present high valuations are potentially supportable. Looks like there are some conditions that would permit rates staying low for a while yet--Asia and not to mention that y'all in the States have an election approaching. (Eh?) 'WDC is an example.' Yeah. Um... Well drives are a commodity product. Given a chance to purchase a commodity company vs a franschise company when Mr. Market is gloomy I'd go for the latter. So say UTEK does go to single digits, I'd be really surprised but not all that troubled even though my average purchase price is in the low 20's. I'd assume then that Mr. Market took too much Haldol or something--I'd sell apples on the streets to raise cash to buy more! Would you? Hell, it's just money. Ciao, David Todtman