Scared,
I don't think so. They have a 2.25 billion market cap, over 15x sales, 11x book, it isn't like they are selling stock cheaply. This is a good price, it bolsters their already good balance sheet, but I am great believer in getting cash when you don't need it, cause when you do need it, no one wants to give it to you except on onerous terms. This stock should go off between 82 and 85, if today's prices are any gauge. I'd rather see a debt free, cash rich company any day. After they get their fabs in order, and the transition to UMC is set, then, I hope, their cash flow should be sufficient to see them through any future needs. For now, they want to be a major league company, they need a major league balance sheet, especially going against the companies they are competing with.
My opinion only. |
