By William Trent, CFA of Stock Market Beat
When we saw predictions of a second-half rebound for DRAM prices, we said:
Or, more likely, vendors hope demand will kick in later this year. Furthermore, with all the new supply being added it is unlikely to be absorbed even if demand does pick up. We don’t think prices will rebound in 2007, although the stocks may bottom this year ahead of the bottom in industry fundamentals.
But perhaps we were misinterpreting. Perhaps by “propping up” prices they meant that prices would fall more slowly. Alas, even that may be a premature hope, according to DRAMeXchange:
After experiencing a temporary rebound, the DRAM spot price has started to weaken again. Amid the national holidays in the Hong Kong and Taiwan markets, minimal transactions were seen. The DDR2 512Mb 667MHz chip price stayed near the USD 2.9 level, while the DDR2 eTT slipped to USD 2.65.already covered the New Year Holiday myth so we won’t go there again.
Oh, and we
According to iSupply, the top DRAM producers (exposed stocks) are:
- Samsung (SSNLF.PK), 27.8 percent
- Qimonda (QI), 16.9 percent
- Hynix (HXSCF.PK), 15.8 percent
- Micron (MU – Annual Report), 10.6 percent
- Elpida (ELPDF.PK), 10.2 percent
- Nanya, 6.6 percent
- Powerchip, 4.8 percent
- ProMos, 4.5 percent
- Etron, 0.9 percent
- Winbond (WBEMF.PK), 0.6 percent
Caveat emptor.
For more information, see all articles on: Stock Market, MU, SSNLF.PK, QI, HXSCF.PK, ELPDF.PK, WBEMF.PK
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