Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

Merrill Notes MMM's Flat Penel Displays Down 0.4% W-W

We surveyed major retail stores in the New York/New Jersey area to gauge volume/sales and pricing for FPD TVs - the stores reported that sales were in line with last week yet largely below expectations. Pricing declined by roughly 0.6% week/week - consistent with an expectation for increased promotional activity throughout December and slightly ahead of last week`s ~0.4% decline. FPD is among the fastest-growing electronic industry segments, and TV is the fastest growing FPD segment. 3M dominates the global market for display/brightness enhancement and polarizing (filtering) films. If volumes do not meet the industry`s high-growth expectations, further pricing erosion/supplier profit pressures (eg, to 3M) could ensue, while channel inventories could affect future sales in 2005