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: BUGGI-WO who wrote (3382)	2/14/2008 1:52:20 PM
From: Pam	Read Replies (1) of 4590

I have expected such kind of answer. Have you looked into the last SSTI quarterly numbers? We saw 107mio. earnings and a loss over 24Mio. I will transfer this for you into SPSN metrics => 652Mio. rev and 146Mio. loss , instead they made a loss of 49Mio. Second SSTIs book value decreased YoY by 12% which is the same SPSN did. Third, the low end segment is by far the segment, where competition is the biggest - all guys can manuf. low-end -> in the end I see no future "way" for SSTI because they have no products to compete against the big guys. Fourth - plain and simple numbers: SSTI Price/Sales (ttm): 0.73 Price/Book (mrq): 0.93 SPSN Price/Sales (ttm): 0.18 Price/Book (mrq): 0.27 Buggi, I am getting to know you better every time I read your posts. Do you know how to read an I/S? Did you know that SSTI had a 380K in OI last quarter. Did you care to find out where the reported loss came from? Seems like we first agree on valuation (at least implicit), just because your thoughts give a SPSN target of around 10$. Here we go. How did you conclude that my thoughts about SSTI gives SPSN a valuation of $10? Enlighten me, please. SPSN and SSTI have totally different operating models and you just can't use the ratios for SSTI and compare or apply them to SPSN. Street must be really stupid to not go long on a stock that is worth $10 but selling for $3.18! They are even more stupid to short it all the way down to $2.69 and not even bother to cover it. There are obviously risks in what SPSN is trying to do and until a clearer picture emerges, what it is selling for is the fair value of the stock! SPSN maybe oversold and that is the best you can hope for right now. The ratios that you are using to calculate the fair value of this company doesn't capture the risk it carries. As the risk gets lower or the perception of it, SPSN would tread higher, not before that. BV that they report is historical BV, you can't even rely on that number!

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