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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (7204)	10/28/1998 6:06:00 PM
From: Stitch	Respond to of 10921

Zeev, IDC's latest prognostications: Message 6197964 Best, Stitch

To: Zeev Hed who wrote (7204)	10/29/1998 7:30:00 AM
From: Mason Barge	Respond to of 10921

<<Many of the companies have, however, reduced their "breakeven" point by reacting to sales slumps with head counts reductions>> I agree. Don't forget there's a downside to downsize, though. While lowering exposure to lower sales, it concurrently limits their sales on the upside. That is, they can't produce as much product and will have to reimplement the lost capacity to grow sales. Cymer is maybe the most unfortunate of them all in this regard, with an enormous ramp-up coming on line around September of last year. The loss of capital efficiency in downsizing and ramping up is, of course, lost forever i.e. wasted.