Speedfam [SFAM] Lovers Unite ! Message Board

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Technology Stocks : Speedfam [SFAM] Lovers Unite !

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To: Mr. Sam who wrote (2609)	1/29/1998 3:14:00 PM
From: JZGalt	Read Replies (2) of 3736

Is anyone using Price/Sales or Enterprise Value/Sales to value this company? I took a look at this company in a general survey of the carnage in the semi-equipment area and at first glance I didn't think it was "cheap" enough for my tastes. Historically the price/sales numbers go to around 1.0 before this industry becomes a screaming bargain. Then I started to look at some of the stocks that were "close" to their lows pricewise. SFAM stood out because of the huge amount of cash relative to the price of the stock. If you subtract the cash from the price of the stock, you can get the company for only $15/share and the price/sales ratio drops to near 1.0. BTW, this is not my creation. The Motley Fool's call this sort of calculation Enterprise Value. Another company that passed on this basis is ADEX as well as IPEC (now). Comments? ---- Dave

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