Asyst Technologies (ASYT) Good Value/Where is the Bottom? Message Board

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Technology Stocks : Asyst Technologies (ASYT) Good Value/Where is the Bottom?

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To: Artslaw who wrote (1134)	10/21/1998 5:22:00 PM
From: Michael Burry	Read Replies (4) of 2313

I don't know what the stock will do tomorrow, but the numbers aren't so bad. Just remember that this is a cyclical company in a cyclical industry that is undergoing the most severe downturn in its history. But it burned only $4 million in operations. Cash is now about $48 million with no fixed debt payments. Some of that cash flow was shrinking working capital, but acknowledgin that, the company is still very healthy and not hemorrhaging cash fast enough to be in danger. Buying back stock and making acquisitions is exactly what they should be doing if they are confident in the industry outlook longterm. Buying back stock below book value increases book value per share. Acquiring other companies on the cheap makes sense if they know the cycle will reverse itself. Since we know Asyst is financially strong and is the leading player in its niche, and we know that the semi cycle is indeed a cycle, any drop is just another buying opportunity for money with longer than a 1 year holding period. Good investing, Mike

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