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.

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

To: Carl R. who wrote (41939)	1/7/1999 10:10:00 AM
From: DJBEINO	Respond to of 53903

01-08-99 LG expected to shift focus to telecom business Now that the LG Group has decided to hand over its semiconductor unit to rival Hyundai Group, it will shift its business focus to the telecommunications sector, industry sources said yesterday. Concluding the chip merger, LG denied the possibility of any "compensation" from Hyundai or the government in return for its abandonment of the chip-making business. But industry sources say that in follow-up talks to the chip deal, LG will seek to acquire the telecommunications stakes currently held by Hyundai in Dacom, Hanaro Telecom and other communication service providers. LG Group, which has LG Telecom, a mobile service unit and LG Information and Communications, a telecom equipment maker, has often expressed a desire to expand its business around the telecom sector. LG will likely ask the government to remove its stockholding limit in Dacom, an intercity and international call carrier, according to sources. While entering the personal communications service (PCS) business in March 1996, LG pledged to limit its stake in Dacom to five percent, under pressure from rival Samsung and Hyundai groups. But LG has since demanded the limit be removed, citing that a freer competition environment is essential to improving the quality of telecom services. Officially, LG Group has 4.9 percent of Dacom. Industry officials, however, believe that its stake will rise to almost 30 percent, if the stakes held by LG's friendly shareholders are taken into account. In case LG takes over the 6.2 percent of Dacom shares held by Hyundai, it will emerge as the long-distance call carrier's largest shareholder, sources said. Dacom, meanwhile, is a major shareholder of Hanaro Telecom, which is set to start a local call service in April. If LG takes over Hyundai's 4.44 percent stake in Hanaro Telecom, it will also have the greatest share in the local call carrier. Under growing financial burdens caused by its aggressive expansion, Hyundai Group may also give up its interest in Onse Telecom to LG, sources said. They said Hyundai, which is said to have almost 30 percent of Onse Telecom, an international call service provider, cannot afford to spend more money in the carrier, which usually requires continuous investment. If LG takes over the telecom stakes from Hyundai, it will become one of the three major players in the industry, together with Korea Telecom and SK Telecom, sources said. mu 65 +5 3/8 (9.01) 64 3/4 (1) 65 (50) 1,964,200

To: Carl R. who wrote (41939)	1/7/1999 2:01:00 PM
From: Carl Held	Read Replies (3) \| Respond to of 53903

Again, analyst pumping more air into the balloon. Carl R: An analyst made comments on MU this morning which doesn't make sense. She said that demand will continue into the 1st quarter, but in the earnings report, net sales dropped 17.1%, which confirms that these analyst are hyping again. Another fact: Saloman Smith Barney bought 286,900 shares @ 53 on Monday. Today, they have sold them at 64 3/4, a profit of 11 3/4 pts., I know because I watch every trade and an article came out stating they sold them. Saloman probably figured that there would be a major short squeeze due to the momentum going into this week, also I have noticed a trend, analysts are making many comments on the Semi companies since mid Nov. The SOX index was getting tired, so they needed to make more noise to keep it going. If you think about it, MU hasn't made any comments during this whole time other than the earnings report, which was a disappointment when they were so optimistic. It is very interesting that Abby Cohen(market guru) has reduced her exposure in equities and also said she remains bullish. She needed to say the second comment so the market doesn't drop as she is selling into the momentum. To everybody, this should be a red flag meaning the market is overpriced and now is the time to take the money off the table (start selling). Price-to-cash flow is at an all time high of 43.9x (very overvalued). Back in 1995 (their best year), the high was 19x. When the bubble bursts, it will not be pretty.