To: kemble s. matter who wrote (62214 ) 8/30/1998 10:29:00 PM From: Mohan Marette Read Replies (1) | Respond to of 176387
Tech Stocks- Hanging tough in Taiwan. Kemble: Here is some info which might of interest. ExcerptsCompal, who makes notebooks for Compaq rivals Dell Computer (DELL - news) and Hewlett-Packard (HWP - news), also had a smooth first half, achieving 68 percent of its full-year pretax target of T$3.9 billion, Wang said. With the peak season still ahead, Wang expects Compal to boost its profit forecast toward T$4.6 billion. TAIPEI, Aug 30 (Reuters) - Taiwan's high-technology industry, most of which is cutting 1998 profit forecasts to cope with slowing global demand and Asia's recession, stands bloodied but unbowed, and is still spoiling for a fight. ''Taiwan hasn't really fallen. It's actually on an upturn,'' said Georgiant Ho, senior analyst at Taipei's Polaris Securities. Though Asia's financial woes are likely to batter Taiwan's 1998 economic growth to just 5.3 percent, its lowest since 1985 and 1.5 percentage points below 1997 growth, analysts are quick to point out that the slowdown doesn't necessarily mean the high-tech industry will grind to a halt. ''The worst has already passed,'' said Connor Liu, an electronics analyst at Jardine Fleming. OEM powerhouses like Compal Electronic Inc (2324.TW) and Inventec Corp (2356.TW) are among the best examples, said analyst Wang Chih-min of Core Pacific Securities.Inventec, which makes notebook computers for U.S. giant Compaq Computer Corp (CPQ - news), got slightly more than halfway to its 1998 pretax profit goal of T$4.4 billion in the slack first half. With a better second half, Wang said, Inventec should come out looking good. Compal, who makes notebooks for Compaq rivals Dell Computer (DELL - news) and Hewlett-Packard (HWP - news), also had a smooth first half, achieving 68 percent of its full-year pretax target of T$3.9 billion, Wang said. With the peak season still ahead, Wang expects Compal to boost its profit forecast toward T$4.6 billion. ''It's relatively difficult to kill off a Taiwan semiconductor company,'' Cleary said. Analysts expect Taiwan's technology companies to have turned the corner by the end of 1999, but that for the time being the sector will have to slog on with lower-than-expected earnings.... biz.yahoo.com