25 Quotes by Drew Peck

Meanwhile, that's been in the midst of reasonably stable pricing in the processor business and I think that the stable pricing is about to come to an end. By the end of this year, we're going to see sharply eroding prices as we get into the first half of next year.

Obviously, this company is having big problems. It's cash flow negative. They are now at the point where they are selling off pieces of their business to subsidize the remaining piece. All their eggs are in one basket.

But that's probably too academic a point of view. The reality is that investors, especially short-term investors and day traders, all gravitate to the most beaten-up names because that's where they get the highest bounce.

But both of those benefits are going to disappear by December and then January and February are going to be very, very tough. I don't have an issue for Intel's third quarter, which is mostly over. My concerns are mostly focused on the first quarter of next year -- that's when things are going to start getting derailed.

I don't think were anywhere close to the bottom.

I think a lot of people were a bit nervous about this quarter and there might be a bit of a collective sigh of relief that they pulled it out and that should be viewed positively. The second half of the year is likely to be a whole lot better.

Optical networking is exploding, and the market will experience tremendous growth during the next decade. As we noted with Digital Subscriber Lines, few important technologies experience smooth and steady adoption cycles. Customers cannot accurately calculate the exact rate of adoption, and the inevitable result is inventory imbalances.

The assumption is that a lot of the problems that we're seeing in the semiconductor industry now are related to the economy, and any move by Greenspan to shore up the economic situation we're seeing is going to be very beneficial.

While the company has seen no negative trend in its bookings activity, the Nortel remarks suggest a downturn is inevitable, although probably not until the first quarter of 2001. Unfortunately, stocks selling at more than 100 times multiples don't fare well in the face of any negative trend.