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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: HB who wrote (33816)	10/12/1998 12:50:00 PM
From: eabDad	Respond to of 132070

HB- Be careful not to believe the "proliferation of application" story. PCs account for 1/3 of semi sales, and the long-term equipment cycle is dependent primarily on one issue: DRAM supply/demand balance. Telecom/networking will be of increasing importance, but not enough to bring us out, and the foundry biz is way, way over-supplied in capacity and technology. There is no motivation to spend there. Short term the equips will trade with the sentiment of the chip sector generally. Can't remember how I've disclosed positions publicly or privately, but I have small positions in MTSN (trading near cash value) and picked up NVLS recently (best run company in the biz), and of course my KLIC. The MTSN and NVLS positions were probably early, but the value was there. My point of people fearing quarterly losses in the blue chip equips is what will drive the stocks down. NVLS' announcement today beating estimates just because of cost cutting measures is a testiment to this part of the picture. I'll probably write some calls on NVLS shortly. Z