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Technology Stocks : FSII - The Worst is Over? -- Ignore unavailable to you. Want to Upgrade?

To: Kent Sarikaya who wrote (2149)	8/8/1998 11:51:00 AM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 2754

Yes, I would definitely put this past week in the category of a bounce. It's like the old saying "We are not out of the woods yet". The economic situation doesn't seem to be very stable yet. In reading the L.A Times this morning, there was an article on the Chinese Yuan - the URL is below: latimes.com Asia in general seems to still be in turmoil. It seems to me that until that situation becomes more clear, the semi-equips will "bounce around" as the weeks go by. There was a positive article on Solectron in the Friday issue of IBD. I couldn't find a way to retrieve it for this post, but it pointed out that Solectron is getting more business as a contract manufacturer. Even though times have been tough, the outsourcing from the big companies to Solectron to do their manufacturing has increased. This general trend may also be helping AFLX and SFLX, which could have been a reason for the good showing in the stock price gains of this past week. One of the best quotes from the article is: "Bad times in Asia aren't necessarily bad news for electronics outsourcing companies like Solectron Corp. True, global technology firms dependent on the region for revenue have scaled back inventories in the face of slowing sales growth. But they've also accelerated efforts to sell manufacturing assets and outsource production and services to companies like Solectron to save money,"