@OT - MU // Morningstar Update
blogs.barrons.com
Important comment:
"
He says valuation remains “compelling” at 0.7x tangible book value.
"
The problem here, how the next quarters will look like - for
the next quarter, I'm seeing the same QoQ, the quarter after
that is very unknown -> all is unknown, but I agree, that
a 0,7x book number is low, also from an historical point.
Thats leads me to SPSN -> I don't know, why one shouldn't
apply also such a metric here?
@SPSN - Morningstar Update
"
Analyst Note 04-02-08
On March 31, STMicroelectronics and Intel announced
that financing transactions required to complete the
previously announced spin-off of each firm's respective
NOR flash assets into an independent joint venture named
Numonyx had closed. We had extolled the benefits of the
plan for STMicro (in notes published May 23, 2007, and
Dec. 10, 2007) and are thus happy to see that the deal has
finally been consummated.
In our opinion, issues regarding deal financing were the
likely sticking points in keeping the transaction from
closing in the second half of 2007, as originally
announced. In the end, Intel and STMicro had to guarantee
bank loans to Numonyx underwritten by two Italian
institutions.
In addition to helping STMicro's profitability and returns
on invested capital, we believe it may also end up giving a
boost to NOR flash giant Spansion. Spansion, a carve-out
from Advanced Micro Devices, has struggled to turn a
profit since it went public in 2005. We believe the pricing
pressures that have eaten into profitability at Spansion
and in the NOR sector in general can be at least partially
attributed to an overly crowded market. Consolidation of
Intel and STMicro's NOR operations into a single
stand-alone entity may bring about more-rational price
competition and, in turn, allow profit margins across the
board to increase.
...
"
BUGGI |
