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Technology Stocks : CRUS--"Shorta's Paradise"
CRUS 129.81-1.1%3:59 PM EST

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To: SNOWMAN2 who wrote (42)1/13/1997 7:02:00 PM
From: johnd   of 44
 
SNOWMAN2:

As of last quarter they had already paid 100million + of the
435million for fiscal 97. Remember since then the company raised
600million in lease financing + sale of unprofitable biz +
sales 300 million convertible notes. I think they are well set
(in balance sheet) for this capital spending. They need to do it
to achieve manufacturing edge and gain 50% gross margin like
how cypress and idt do it.

Key is top line and bottom line this quarter.

If revenue increases another 10+% sequentially and if profitability
beats the 11c estimate, then I would say it is a strong buy.

johnd
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