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 : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (31899)	10/18/1998 12:09:00 PM
From: Gersh Avery	Read Replies (2) \| Respond to of 94695

GZ I might stay away from financials for a while. I believe that AG warned that there will be several firms that go belly up soon. Gersh

To: GROUND ZERO™ who wrote (31899)	10/18/1998 12:09:00 PM
From: Brad Bolen	Read Replies (1) \| Respond to of 94695

Watch the SOX: Sunday October 18, 3:51 am Eastern Time Taiwan Semicon Q3 net seen poor, but worst over By Alice Hung TAIPEI, Oct 18 (Reuters) - Microchip powerhouse Taiwan Semiconductor Manufacturing Co was seen posting a gloomy third quarter profit, but analysts said the worst will soon be over. Analysts said the closely watched blue chip, expected to announce its third quarter profit after the close of Monday's stock trading, would report its worst quarterly profit of 1998. Taiwan Semicon, which has a listing of American Depositary Receipts (NYSE:TSM - news) on Wall Street, is the world's leading manufacturer of made-to-order ''foundry'' microchips. ''The third quarter is really the bottom this year,'' said ING Barings' Taiwan semiconductor analyst Donald Floyd. Floyd forecast the semiconductor giant's third quarter net profit at just T$3.0 billion (US$91 million) -- sharply lower than T$3.758 billion in the second quarter and T$6.947 billion in the first quarter. The firm reported a net profit of T$4.6 billion in third quarter 1997. Analysts said the expected profit decline was mainly due to low sales. Taiwan Semicon's sales dropped a year-on-year 15.9 percent in July and 2.6 percent in August, but recovered in September with a 5.1 percent annual rise. Taiwan Semicon had said it expected the global semiconductor industry to face continuing challenges in 1998 as Asia's economic slowdown, oversupply in components products and pricing pressures would remain unchanged in the near term. Analysts agreed that the industry would likely remain sluggish but they said Taiwan Semicon's earnings would soon bottom out. ''The third quarter is definitely going to be worse than the second quarter,'' said Polaris Securities' senior analyst Georgiant Ho, who put his profit forecast at around T$2.8 billion to T$3.2 billion for the third quarter. ''But the good news is -- the worst is now over,'' Ho said. ING Barings' Floyd shared Ho's views, forecasting Taiwan Semicon's fourth quarter net profit at around T$3.9 billion. ''Sequentially it's going forward. I am looking for an increased profitability in the fourth quarter,'' Floyd said. Analysts said they did not expect a dramatic stock selloff in Taiwan Semicon as most investors had already factored in oversupply and a sagging semiconductor industry worldwide. ''The market is likely to be neutral to its profit announcement,'' said Michael On, president of Beyond Asset Management. ''Investors know it's not just the problem of Taiwan Semicon. It's mostly the problem of the external environment and the entire semiconductor industry as a whole,'' On said. Ho of Polaris Securities said it was still worth betting on the company's long-term growth. ''We are bullish in Taiwan Semicon's long-term development. It's a company with solid fundamentals and potential. When the industry recovers, it will be the first to benefit,'' Ho said. Taiwan Semicon ended at T$64.5 on Saturday, up T$1.5 or 2.4 percent.