All American Semiconductor (semi) Message Board

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Microcap & Penny Stocks : All American Semiconductor (semi)

SEMI 30.01

-2.6%

Feb 4 4:00 PM EST

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To: Zeev Hed who wrote (720)	6/7/1998 2:39:00 PM
From: jeffbas	Read Replies (1) of 952

What is the "case" for owning this stock? I can see significant growth in earnings ($.10 per quarter) when the distribution business turns up again, which I would guess would happen in less than a year. SEMI did have just about the best performance among the third tier in 1997. Meanwhile, the stock will probably be dead money around $2, unless there is a takeover. In view of the ongoing consolidation in the industry (Milgray, Sterling, etc.) weak times increase the probability of more rapid consolidation among the third tier players. That is because such times offer an acquirer the chance to buy SEMI at say $3 now, instead of $5 in good times, and deliver the difference to the acquirer's shareholders when things get better. In conclusion, the investment case is that you could make 50% quickly if you get a takeover and you could make 150% in 2 or 3 years if you are patient and there is no takeover.

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