SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Zeev's Turnips - No Politics
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: XBrit who wrote (2932)11/4/2001 6:45:12 AM
From: Zeev Hed  Read Replies (3) of 99280
 
Julius, I believe that you are quite right, and the sudden surge in KLIC was more of an indication of the end of a move than its beginning. I fear that analysts looked at the relative value (price to book) of KLIC to the rest of the industry and decided, "it is cheap" at what was less than two times book at $14. However, those guys forgot that out of the $7.5 of book value, almost a full $5 is goodwill. Furthermore, KLIC is slowly starting to " over leverage itself". Last month it sold $125 MM in convertible debt, and while by itself, that sale was quite smart (just like the recent convertible of NVLS and LRCX), their debt load is going to be in the neighborhood of $450 MM, with sales rate running at about $600 MM per year, it is getting a little "excessive".

Zeev
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News