>>Is this approach reasonable<< Howard, your approach is one way to estimate revenues, but other factors should be taken into account. First, one should look at after tax returns, which means estimating the production expenses and depreciation costs over at least five years. Second, one should factor in revenue from royalties, since the new plant will not be the only source of revenue. And of course, the existing plant will continue to generate revenue. Finally, one should also take into consideration the revenues generated from the Tower Semiconductor plants, in which SNDK has significant ownership, and the profits (if any) from holding or sale of UMC shares, assuming that SanDisk is appropriately compensated for the embezzelment of its UMC shares. They already took a write-off here, but if UMC does well over the next few years, and if SNDK is still holding any of those shares, it will have an impact on overall profits.
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