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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!!

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To: Randy McWilliams who wrote (4343)9/8/1998 11:31:00 AM
From: Hashem Akbari  Read Replies (1) of 6565
 
Randy,
1. The book value is the sum of net cash (+equivalent) and the undepreciated assets minus liabilities. It is NOT the current market value. You can always estimate a low for book value, (and perhaps a high). But the value is practically useless and has no meaning.

2. The only reason that one would look at the current market value of a company is for a take over bid (or stealth takeover). If someone was interested in buying the company and breaking it to pieces and sell, then that person probably would make more than $13 per share. The big question here is the compensation of the laid-off staff; that might be very expensive. SO THE COMPANY WILL NOT BE BOUGHT AT BOOK VALUE UNTIL IT DECLARES BANKCRUPCY! At this juncture in time that is not highly possible. But it would only take a few Qs of bad management to make a profitable company into a ....

Regards

Hashem
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