Mark,
Until there is an IPO at which time the market will put a real, tradable
value on S3's share, any valuation is conjecture.
Besides Lehman's report is flawed. S3's share is 23.75 % with rights to
31.25 % of the production.
TSMC, which is public, is trading at abt 12 times the original investment,
so obviously, once JV1 goes IPO it will trade at some multiples. As one (1)
multiple means $2/share of S3, and with abt $2+/share of cash, it doesn't
take a magician to see that the stock is undervalued (out of favor).
Hopefully, the JV1 will help to correct this partially, new products would
really help.
Mind you, ALSC is not doing that great either, they are trading at just
below 5.
Interesting times will be ahead.
JMHO
Jan |
