N, I have summarized these amounts/calculations at post #453 on the CMOS thread. Only point was to subtract the net liquid assets (net of all debt) from today's closing price to arrive at the real price attributable to the operations. Conversely, the interest income and certain other amounts are either added or subtracted from income reported to arrive at income truly generated from operations. This only highlights how cheap CMOS really is, especially when compared to some of the larger equipment makers such as KLAC, TER, LRCX, etc.. Whether you use the year to date income, next years estimate or the 4th quarter annualized, CMOS is cheap by any yardstick. MTSN, is probably an even more compelling buy here when you subtract the $8-9 per share of net working capital and subtract it from today's price. You can almost buy MTSN with its own money.
I don't want to confuse you here, but because of the wide disparity in balance sheets among the group, I always incorporate this quick review into my investment decisions. Go take a look at Brooks Automation. If I recall, they have approximately $17 of net liquid assets on their balance sheet and they are trading at $23.81. Furthermore Brooks had $7.2 million in pretax earnings for their last quarter of which $4 million was interest income. Somehow you need to adjust to the true operations and that is all I am trying to illustrate. Hope this helps clarify my comment.
Eddie |
