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 : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: DJBEINO who wrote (4715)	2/25/1999 10:12:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

Increasing Demand of 64MB SDRAM 02/25, 17:24 With the decline of a chip's unit price and the spread of highly advanced PC, the large capacity memory is rising in popularity in the market which has been occupied with 32Mbyte product. According to industry resources, the market share of 64Mbyte synchronous DRAM(SDRAM) has passed over 50% of all SDRAM demands and is extending its influence with rapid speed. A vendor of Samsung Electronics in Yong-san Electronic goods market, the largest electronic avenues in Seoul said that 6 of 10 customers are requiring the 64 Mbytes module at present. Its unit price is currently around 110,000 won to 120,000 won(about $95-$100 / 1 US dollar=1,200 won), sharply decreased from 30,000 won($24) per 1 Mbytes in 1993.

To: DJBEINO who wrote (4715)	2/25/1999 10:16:00 AM
From: DJBEINO	Respond to of 9582

02-26-99 : U.S. to monitor Seoul's steel, chip subsidies The United States will keep a close watch whether the Korean government provides hidden subsidies to its steel and semiconductor makers, U.S. Deputy Treasury Secretary Lawrence Summers said yesterday. During a news conference at the American Chamber of Commerce (AmCham) in Korea, he also warned that foot-dragging chaebol restructuring and labor unrest are delaying the economic recovery of Korea. "The United States has welcomed President Kim Dae-jung's commitment to openness and to doing away with directed lending, hidden subsidies and other unfair practices that have been such a stumbling block in global trade arena in past years," he said "But suspicion in this area will often be as damaging as hard proof. In the steel and semiconductor sectors, especially, it will be vital to put to rest any doubts that subsidies are continuing behind closed doors," he added. The visiting U.S. official made it clear that when the United States increased its capital contribution to the International Monetary Fund (IMF), it attached a precondition that the Korean government stop subsidies and directed lending to companies. The U.S. government maintains a stance that competition with foreign companies should be fair, and if the Korean government provides unfair support to domestic firms, such act will be subject to probe, Summers stressed. "Support is possible through changes in tax systems, even though it is not direct subsidy, and the United States will always watch if Korea provides such support," he said. However, Summers said that there is no evidence yet showing Korea has subsidized companies. He also called on chaebol to keep their pledges to reform, noting on the agreements on restructuring made between top five conglomerates and the government. Summers also warned Korea against complacency over signs of economic recovery for recent months. "The government's very success in addressing these problems and restoring economic stability means that to some extent the problems that it faces this year will be more one of complacency," he said in a speech preceding the news conference. At present, Korea is at the end of a tunnel of economic crisis, and entering into the recovery phase, he said. But the country cannot settle with optimism because restructuring problems and rising unemployment are emerging as new crisis factors, he cautioned. Summers, who arrived in Korea from Beijing Wednesday, is on a five-nation Asian tour to discuss the economic crisis in the region and trade issues. He left Seoul for Tokyo later in the day, winding up his two-day visit here.

To: DJBEINO who wrote (4715)	2/25/1999 10:27:00 AM
From: DJBEINO	Respond to of 9582

Final Verdict' on Hyundai-LG Semiconductor Swap Due Today 02/25,16:55 It has been a few months coming but the ''final verdict'' on the acquisition of 100 percent of LG Semicon by Hyundai Electronics Industries now appears imminent. According to officials close to the deal, a six-man committee put together by LG and Hyundai is expected to submit what it feels is the proper price at wh ch Hyundai should take over LG Semicon's shares. The committee, comprising representatives from three Korean credit evaluation companies and Merrill Lynch and Goldman Sachs, have heard arguments from both companies early this week. Hyundai and LG handed their final proposals, reportedly with the blessing of the chairman of LG and Hyundai, but they remained too far apart to engage in any further negotiations, the sources said. ''LG has slashed its proposed price in an apparent bid to hammer out a compromise but it is still considerably higher than what Hyundai feels is a fair price for LG Semicon,'' one industry analyst said. The respective proposals could not be confirmed but Hyundai is reportedly not willing to go any higher than 1.2 trillion won while LG is still insisting on a compensation in the upwards of 4.5 trillion won. The main reason why the two companies are so far apart on price is that their methods of putting a value on LG Semicon is rather different with Hyundai utilizing the discounted cash flow technique. On the other hand, LG is using a combination of DCF and comparable market price (CMP) formats, comparing its value to that of Micron Technology, an American memory device maker company with one of the highest profit indices. '' Just because we are far apart on price does not mean that we have to meet h lf way and it is not likely that the committee will render a recommendation that it designed to bring about a compromise,'' one Hyundai official said. Senior publicist Lee Kwang-seok said the main purpose of merging the two companies is to increase international competitiveness, and giving LG excessive compensation can only set the newly merged company back. He went on to say that Hyundai's calculation is based on the current value of the 91 million-odd shares that LG's subsidiaries hold, which was trading at 10.800 won yesterday morning, plus about 20 percent in future value. While Hyundai feels that the future value of LG Semicon merits a compensation f just 20 percent, LG's initial calculations show that its shares should reflect a value of at least 70,000 won. ''The reality of the matter is that Korean stock is currently excessively undervalued. Plus, the prospects of the market for dynamic random access memory chips is exceptionally bright,'' one LG official said. The positions of the two companies may be very different but they share the same fate, a fate that will lead to their signing of a final contract by March 7th. If they fail, the company or companies responsible for the breakdown will face stern action from creditors, including the suspension of new loans.