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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Zoran who wrote (1964)	7/19/1998 10:52:00 PM
From: Mike	Respond to of 3818

Tom, Thanks for the info on the PMCS board and rehashing your previous posts prior to the falloff. I am a new investor in PMCS and would be interested in your thoughts going forward. Do you think we have not heard about the "pricing pressures" yet? Do you think the guidance that the company has given in reference to R&D is a "coverup"? I dont want to start a rumor mill but interested in your thoughts. Let us know. Is this company going higher or lower? Thanks, Mike

To: Thomas Zoran who wrote (1964)	7/20/1998 12:09:00 AM
From: marvin smith	Respond to of 3818

Too bad you already covered your short position.

To: Thomas Zoran who wrote (1964)	7/20/1998 8:43:00 AM
From: Bulldozer	Read Replies (1) \| Respond to of 3818

Its amazing how confident people get when they're right for the wrong reasons - and still think they know what they're talking about. Thomas, despite your childish taunts, nothing you previously posted had anything to do with PMCS's decline on Friday. Their gross margins were 75%+ - no sign of massive margin erosion here. And let me give you a little lesson in economics - prices drop (and PMC expects then to do so in the future) when volume goes up after full ramp, not down. PMC declined for very specific reasons - fast money that did not want to wait around for the benefits of increased R&D. There has been NO competitive pressure that has not always existed and if you knew anything about their business, you would know their prospects are greater than ever. I guess I forgot to add to my previous post that voluntary (actually not since their huge customers are asking them to design more products - nice problem to have) increases in R&D could also scare out short term mo investors. Save your dribble for some other thread or post something that we could actually have an intelligent discussion about. Bulldozer

To: Thomas Zoran who wrote (1964)	7/20/1998 1:20:00 PM
From: MikeM54321	Respond to of 3818

Thomas, Thanks for your post. I found a couple of remarks you made interesting. "PMCS has grown accustomed to 65-70% gross margin on its semi business. Basic rules of economics say that such a premium cannot last, and price pressure will start to affect even the high margin ATM market PMCS is in. This will negatively affect PMCS's earnings as volume drops and prices are cut." I don't consider this to be way off base or unrelated to PMCS. That is generally what happened to the networking LAN suppliers from roughly 1995 to 1998. It became a commodity business and was hard to maintain their pre-95 gross margins. The networkers had to move quickly and expand into the WAN, enterprise, and telco markets. Some did this well. Others floundered. This is not totally beyond what may happen to the networking chip market. But my hope is PMCS stays ahead of the technology curve enough to maintain high gross margins. Increased spending on R&D is indicative of a move in that direction. But no one can argue the fact that, gross margins of 65%-70%, will attract competitors! "Overall, and I may be against the trend here, but I believe that we are entering a phase of significant weakness that occurred before the October drop. And I also believe there is a general denial of the fact that virtually every economy in the world is in the shitter except the US, but it is preposterous to think that this can last." Now this is a totally different subject, probably beyond discussion subject of this thread. But if you check out the Asia Forum thread from about three months ago, there have been plenty of discussions on why the US is bucking the downturn in Asia. It's a "liquidity" situation and is very interesting in how it drives the US equities and bond markets. Thanks, MikeM(From Florida)