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Technology Stocks : Alliance Semiconductor
ALSC 0.8100.0%Jul 10 5:00 PM EST

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To: Charles R who wrote (5493)7/23/1999 12:55:00 PM
From: Ram Seetharaman  Read Replies (2) of 9582
 
If you look at it objectively the tiny operating loss they showed last quarter, is very tiny compared to their side income from BRCM.
This bitter selloff today (though only @ 15 %) will settle down and ALSC will be trading between 8 and 10 in the near future. The bottom line is keeping the company solvent and try to make profits on any activity, whether it is SRAM or venture capital investment. If an activity is going to yield loss regularly, get out of it sooner than later. The inventory situation is not a good sign at face value. But if UMC is going to pay for it then it is different issue! ALSC should explain all this through PR postings. I am still long all the way till 2001!
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