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Well one NASDAQ stock that's bucking today's trend is novellus.
It's up just over 1% right now and this comes just wake -- -- the chip equipment record cut its outlook.
Citing weak PC demand still -- chairman CEO Richard hale says he's bullish on -- long term and we are pleased to welcome him now.
-- before we start about your business in ten tech in general let's talk a little bit about the president's speech last night.
And what do you think the president doesn't necessarily get about the reality is a business and the economy.
Well Charles I think first and foremost like any business you got to have more cash coming in than going out.
And you know -- United States right now we've got enough taxes come in and we've got too much expenses so too much money is going out and he's got understand that.
Now this was supposed to be there of really bold plan.
I I think it was too much in the middle either way you can look at it.
If you had as they -- what would you have suggested to them.
Well number one -- did some things right I think incentivizing.
People -- hires import because we really really need to get these unemployed people back to work.
But you can't at the same token encourage people not to go back to work by extending the benefits and at the same time trying to incentivized people to higher arm.
With a paltry amount compared to what your pain and unemployment.
I've got a I've visited the Telus small business like -- we want to hire people and raised there with exists.
I think that -- pillow not that I actually think we should applaud small businesses that are holding on -- people working right now anyway.
Not having said that the consumer -- consumers obviously two thirds of our economy.
Whereas the consumer right now I know you worried about PC sales but there are other exciting things out there I -- I go to the mall and -- Apple Store there's a long line now decision worst brush everywhere else but at the Apple Store.
So help us navigate through that worst -- consumer what the role of the consumer right now with respect to our recovery.
Well I think overall when you look at the consumer it's really not that bad at this point in time.
You know when times get tough people wanna entertain themselves.
And electronics are the key that apple has exciting product people -- -- buying them.
It's an opportunity for other companies to step up compete and try to go after apple.
So now now having said that we the consumer is not just the consumer in America -- that's right we talk a lot about though on this show about corporate profits and a bit absolutely a -- fabulous but the dirty secret is a lot of that is coming from the consumer outside of America.
In a speech we heard the president talk about China and South Korea quite often.
And in this country we talk about outside of America almost as if they're villains or are have a series.
Help us understand the dynamic of them being both our competition but also customers and in house -- we handle that.
Well you bring up a very important point when you look at a company like novellus 80% of our sales are actually outside of the united it's 8% 80%.
A majority of that now is going into Korea Taiwan in in the mainland China.
And they're producing goods for mainland China I think we under estimate how important.
When they really value of the R&B.
How were increasing the balance sheet of all those Chinese consumers and they wanna buy.
Let's look healthy of viewers understand you're saying what when they re in other words from China -- the currency it go higher that's right when it appreciates that a currency appreciates.
The consumer's balance sheet the Chinese.
Person who's had are in -- that they're richer than and they're gonna buy more of your product because they're capable of they've got more buying power and as a result we are seeing more buying in fact president -- isn't it ironic that most of the rest of the world is trying to push their currency lower making their citizens for.
I can't let you go out talking about your stock I mean Europe today but that's -- in general have been down.
I look at your stock a look at the peg ratio of the price to book to price itself and its -- It seems like a screaming.
By having you must it's pretty big every day knowing that it seems so undervalued what's the what's the disconnect and investors are getting right now.
Well I think first of all the best property on -- whole monopoly board relative to high technology.
What I don't think they really -- is central to the success of semiconductors.
Is the technology equipment companies provide.
And it's one of the best export engines the United States has today.
And we continue to be competitive because we're the best at what we do not because we're subsidize.
And by the way the president gave you guys props in his speech last night -- said the semiconductor industry is specifically pointed pointing that out.
Do you feel things are gonna get better -- that just for your stock but here in this country do you just have an overall feeling that we were gonna work our way through this or are you little gloomy.
When you're in the semiconductor industry you gotta be optimistic to go through a lot of a lot of cycles in you know I have an upbeat personality and things are gonna get better a lot better.
Thank you very much we appreciate it.
Richard hill chairman and CEO of Novell is really appreciate your time and continue.
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