I meant the clean rooms, not the foundation, that they started few months back. However, you should be aware that they still are short about $500 MM in the required financing department, and if the shares stay where they are, that may require another 50 MM shares, on top of quite a lot of shares already issued (some 8 MM?) and many additional shares to be issued later as the milestones are met and the different parties pay their allotted payment. The most dangerous part of the deal is the $550 MM in debt they are assuming, depending on the interest rate, that could be a yearly charge of $50 MM, which will be sometime before they can really pay. I do not know when they intend to have their first run, but typically it is at least 18 months from "pouring" the foundations, so it will be mid 2002, probably a good time, since shortages in f;lash might develop by then, but will that give them enough breathing room if we get a real bummer market in 2003? I would say that while there is a good chance of a very good run, there is also a big chance that the risks are too high. I still stand by my opinion that in the next few months, these shares can be had for under $10.
Zeev |
