Spansion Inc. Message Board

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Technology Stocks : Spansion Inc.

CY 23.82

0.0%

Apr 16 5:00 PM EST

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To: bobs10 who wrote (3052)	1/16/2008 1:32:23 PM
From: Pam	Read Replies (2) of 4590

As I keep saying the bottom wont be set until the big boys start getting interested in SPSN again. What that will take is anyone's guess, but a good CC would be a nice start. A better than expected loss would also help. SPSN, mainly because of the proprietary/go it alone nature of MirrorBit is still a high risk proposition. The thing that has changed is the possible reward as SPSN is getting closer to the time when all the investments made are going to pay off, or not. Bob, big boys do not get involved in stocks trading below 5 dollars. Some institutions have very specific restrictions. What one needs to do is a pro forma analysis as to how the company will look like when it finally merges with SFUN this Q. With the merger, opex will go up but not the Revs. SPSN will continue losing more because they have a heavy interest bill to pay every Q whether they make money or not. Higher R&D expense should eventually result in more new products that can increase revs but that takes time which Spansion doesn't have a whole lot of. If anyone heard the INTC CC, they have taken a 230MM asset impairment charge (100mm more than they originally expected) and I am suspecting STM would have done a similar number, so Numonyx has a few Q's to phase-in as an independent company. Spansion has a lot of debt and associated interest expense. There is some Cash but that is called for and if you look at the difference between A/Rs and A/Ps, there is some debt being financed by A/Ps which eventually will have to come down. With the pricing environment in NOR, CFs are unlikely to improve for a while and that's a problem. The stock has come down a lot in last year and a small bounce could happen anytime but Spansion is in a somewhat dying market. They need to evolve into something outside or a variant of NOR because the future is not so bright for just NOR.

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