What do people think will happen to Spansion?
The stock price trend probably answers that question. (But we knew that.)
The only thing the buyer can do is break up the company and sell off the pieces.
I bought this in large part because of tangible book value. That idea doesn't seem to be holding up. P/B and P/S are both .01. At end of Q3, they showed book of $1.4B. Even valuing inventory (614M), net receivables (407M), goodwill (18M), and intangibles (57M) all at 0, that still leaves 300M net equity. Or from another angle, if property, plant, and equipment is worth the 2.3B shown, that would about take care of the 2.4B in liabilities, with all other assets being a net positive. Maybe the bottom line is, if the PPE can't make money - for Spansion or anyone else - it's really not worth anything. |
