Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

marginnayan....

I am more sure of my bearish stance on the equipment sector and see no way for them to do well. As for the chips, I base my outlook on my view that the consumer will not only be unable to lift us out of the situation we are in, but will likely drag us back down into recession as he finally succumbs to high debt, unemployment (and underemployment), and eroding confidence.

I also am hearing anecdotal data from within the industry that the spurt of improvement in the past few quarters was primarily due to inventory rebuilding and hope that the economic turn was upon us, and now that hope is fading quickly. Some chipmakers, as you noted, will fare better than others, but I fear that none will do well and some will face a second period where inventory oversupply is once again a problem, although probably not as bad as before.

Just my opinion, though, and probably worth no more than you paid for it. Take care and good luck to you.

mlsoft