Replies to post #401022 on Zeev's Turnips Patch-No Politics (ZEEV)

[late bloomer]

Well, I read it somewhere... but be that as it may, do you think that NVLS shutting down for a week at a time when demand is supposedly higher than expected and inventories lower than expected, is a good thing?

I glean from your post that you have an open-minded familiarity with this company... I appreciate your input.

[late bloomer]

Hey See Shasta, you out there?

Thought I'd bounce this off you, it's a repeat of what I'd heard/read before. It's long term bullish for NVLS's cost structure, but it still sounds like overcapacity which will be remedied by consolidation of manufacturing into the Tualatin plant. What happens to the other sites I don't know, but I still interpret this scenario as leading to layoffs.

Would love to hear your informed opinion on this...

CSFB noted that Novellus operates four plants, three in the western U.S. and one in Germany, and that while the Tualatin facility only accounts approximately 40% of the company's output, it could handle all manufacturing operations.
"Novellus has not articulated such a consolidation strategy--but we believe it is not unrealistic to expect some consolidation over the next two to three years, which could help the company improve operating efficiencies."


http://www.forbes.com/markets/2005/06/20/0620automarketscan11.html?partner=yahootix&referrer=

[marginnayan]

<a few folks this weekend>

They never know what is actually cooking except for management. I can bet on it.