Speedfam [SFAM] Lovers Unite ! Message Board

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Technology Stocks : Speedfam [SFAM] Lovers Unite !

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To: HoodBuilder who wrote (2626)	2/3/1998 8:33:00 AM
From: Michael Burry	Read Replies (1) of 3736

How could R&D be reduced when SFAM is building a new state of the art R&D center? My point exactly - this is a business that as much as any other requires ongoing significant capital expense, so we need to look at operating cash flows less capital expenditure. This number is and has been pretty deep in the red for Speedfam. If it was a telco or other sort of business, maybe we could count on all this investment to result in durable long-term cash flows without the need for continued capital expense at some point in the future. That just isn't the case. Also, I didn't say that they will continue to dip into the equity markets, but that they have done it several times in the past. I usually look to history as a guide to the future. This is a technical/engineering thread, not a financial analysis thread, however, and last I looked tech stocks don't move based on any sort of long-term fundamental picture. And the cash cushion is very significant. That said, swelling AR usually comes to roost, no matter how much bulls try to rationalize it. So I'll just leave it at that - no predictions on the stock price. Mike

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