Calc, I really do not know what you are talking about. As of June 30th, the book value of STEM is just $10/share, that includes the additional 10 MM shares added for which I would presume about $160 to 200 MM were received. If indeed the fab upon completion will be worth $1.1 B, it will be because additional money is invested in it. The Grant from the IDF probably cannot be counted as equity until all the "strings" are detached, namely until TSEM start shipping minimum quantities from Fab 2. I have no idea what is the size of the grant, would guess in the neighborhood of $300 MM, but if that number is wrong, let us know. Yes, that grant is a "gift", but it will be distributed on at least another 10 MM to possibly 20 MM shares, if you take the lower vale that is 30 MM shares or a gift of $10/share. You must weigh that gift against future performance, however, and that we know nothing about. It is not impossible that start up costs and losses will eat up all that gift. Look at VLNC for a similar grandiose scheme that has not come to fruition.
Zeev |
