I see from the CNNMoney page that some stock market analysis report called Next Inning Technology Research is asking whether it’s a good time to invest in Micron and Qimonda.
Oh Yes. If you’re heading up a private equity company, now is the time to buy a memory chip company. A price of around $20bn should get you either Micron or Qimonda.
After all, the semiconductor industry is now mature, the violent market upswings and downswings have been eliminated, the companies are enormously cash generative on a solid, predictable year-by-year basis.
This is the kind if tripe the public equity companies were spouting last year when they valued Freescale Semiconductor at $17.6bn.
Oh yes, they said, they understood the semiconductor industry. Oh yes, the market was heading for a continued upswing. Oh yes, semiconductor companies like Freescale could perform well when loaded up with $6bn of debt.
How very quickly all that rose-tinted baloney has been exposed for the nonsense that it is.
While some 900 families up in Scotland are being made to pay the price for the foolishness and greed of the people who run the private equity funds.
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