Ralph F

Semis With Highest, Lowest Production To Sales Ratio

V. helpful article -- thanks.

Two questions.

You wrote: "For semiconductor manufacturers, production is represented by the semiconductors sold [COGS] and any change in inventory." Don't you mean revenue or sales, not production? Production is only goods manufactured, not net inventory sold.

Second, the main reason why a semiconductor company would produce less than its sell-through rate is if it is trying to reduce inventories. Yes, that probably points to rising gross margins in future, but doesn't it also imply that the company has a significant problem with inventories, and might have to write-down the value of those inventories if it can't sell them off?

Jim Cramer's Mad Money In-Depth Stock Picks, May 24

Does this mean he was bullish on Amazon or bearish? Sounds like he thinks it's overvalued but has momentum.