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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant?
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To: DAN KACKLEY who wrote (4014)10/27/1998 8:03:00 PM
From: Zeev Hed  Read Replies (2) of 4697
 
Dan, there are about 41 MM shares outstanding, the net equity is $458 MM but about $48 MM of this is goodwill, so the true book value is now $10/share. You'll need to add to that expected losses of at least another $3/share over the next two quarters, bringing the book value down to $7. If they sell $200 MM at $5/sares, the number of shares will increase to about 80 MM but the net book value will increase to about $610 MM, and counting $120 MM in losses for the next two quarters, down to $490 $6.125, when everything is said and done over the next six month. This is the negative side. The positive side, is that the replacement value of this company is probably around $1.5 Billion for a replacement value around $20/share.

Right now, it seems that if $5 holds (and if the SOX does not falls apart again), then the current price is quite attractive. If it breaks $5 again, I would suggest for traders to get out since it could easily drop back to the low 3', IMHO.

Zeev
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