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Technology Stocks : Alliance Semiconductor
ALSC 0.8100.0%Jul 10 5:00 PM EST

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To: DJBEINO who wrote (3571)7/7/1998 12:05:00 PM
From: Ken Muller  Read Replies (1) of 9582
 
DJBEINO:

Stock selling off again - 2 7/8.

The single most interesting thing about what has happened to ALSC is the pressure the market has finally started to apply to management. Long overdue and very well deserved. No one on this thread has any influence over the Reddy Brothers, but the voices of those who vote with their dollars have a very large effect.

ALSC is being punished because they have no plan to become profitable. Stock buybacks are not success plans. They have 4 different product areas which all need investment dollars. ALSC does not have the capital to support development of all these areas. So what do they do? What's the plan? Nothing. Nadda. Each day they lose ground to their competitors. Not good.

Unless ALSC has some new dynamite product under wraps, the only reasonable plan to increase shareholder value (thereby Reddy Brothers stock holdings) is to simply close up shop and cash out the fab holdings. Will they do this? Will their egos stop them? I don't know. Possible sale or merger? OPTI has been on the market for 3-4 months with no takers so the company probably won't be sold. Liquidation is probably the more likely answer. They will need a CFO to arrange the best financials for the liquidation so when one is chosen the timing would be good to do some gambling.

Until that time, expect more losses.

Ken
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