MEMC INT'L. (WFR -NYSE) The Sleeping Giant? Message Board

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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant?

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To: Scotsman who wrote (3534)	6/14/1998 6:37:00 PM
From: Zeev Hed	of 4697

Scotsman, WFR is not exactly a "domestic company", Huls own a bunch of it. SEH has wafer facilities in the US and if WFR fell apart, other producers would love to pick the pieces for $.5 on the dollar (the current going price). I have explained, I thought, why such a scenario is not in the cards unless WFR loses money at the rate of $150 MM per year for a number of years. I'll add to that. What counts is cash flow not profits (at least as far as survival is concerned). WFR has finished most of its expansion plans. These past expenditures are showing as $38 MM in charges to earnings every quarter, these are non cash charges, these are depreciation charges. I just do not see such a scenario at all when the demand within three years for Si real estate is going to double from the current demand. They have debt servicing requirements, but the cash flow from depreciation covers these handily. Zeev

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