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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Chas who wrote (41022)	11/23/1998 8:10:00 PM
From: Carl Held	Read Replies (1) \| Respond to of 53903

Analysts are hyping this market.....here is the real story Quoted from the San Diego Union, Sun Nov 22 Unfortunately, california's much-vaunted economic diversity, which has blunted the blow of most previous economic slowdowns, promises little protection from the Asian flu. California companies trimmed around 10,000 workers in layoffs in October, contributing to a nationwide spate of firings totaling more than 91,000. That's the biggest monthly issuance of pink slips since the recession of the early 1990s. So far, some of the biggest hits have been in Silicon Valley, where the semiconductor industry has been reeling from a collapse of the Asian markets. "Korea, Taiwan and Japan represent a third of the world's semiconductor production," says Russell Weinstock, spokesman for Silicon Valley Group, or SVG. "Clearly, when those economies face the situation that they're going through, there's a profound effect on their suppliers." SVG, which makes semicondutor equipment, is beginning its third round of job cuts in a year. By year end, the company will have 1,220 fewer workers than it started the year with. Because of declining sales in Asia, SVG lost $25 million in the past two quarters and analysts project $17 million more in losses over the next nine months. Nov 23, 1998 (6:14 PM ET) - The Motley Fool Evening News An improved outlook for the semiconductor sector in the coming year is coupled with guarded optimism, according to one industry executive. "Although the semiconductor industry has reported the first signs of recovery," said John Dwight Jr., CEO of PCD Inc. (Nasdaq:PCDI - news) , "we believe that caution on the part of our customers has contributed to a decline in our sales." PCD, which makes electronic interconnects for chip makers such as Altera (Nasdaq:ALTR - news) and Micron Technology (NYSE:MU - news) , saw its stock fall $1 to $12 today on Friday's late news that the company expects fourth-quarter earnings to fall below analysts' $0.23 per share figure. The company anticipates reporting EPS of between $0.13 and $0.16, and Dwight hopes for a turnaround in Q2. In a cost-cutting move, PCD laid off several workers last week, according to reports, but Dwight said he doesn't see further cuts at this point. The cutbacks will not result in a charge. It's not over like these analysts are saying, they are hyping this market to sell more stock. Micron fundamentals have not changed. It should be in the 20s price range based on projected 1999 earnings. It will drop back as soon as the reality sets in.