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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (7975)	7/10/1999 10:30:00 AM
From: Clarksterh	Respond to of 10921

Armin - OT - Looks like about 6 years worth to me in an industry that is supposed to be turning up. $5 a share in cash for a stock selling at $7 1/8. Depends on the time frame. In the last full year they burned through 1/4 of their cash and short term investments - meaning that at the same rates they have a little more than 3 years worth of cash. The reason this quarter's cash flow doesn't show it is because most of the negative earnings is due to depreciation and amortization (not unusual in a semiconductor company - and one of the reasons I like the SEMI group.). If the depreciation and amortization was good for 5 or six years then perhaps you would be right, that cash flow wasn't that great an issue. But in this industry the write down period is probably 2 or 3 years and realistically they probably need to upgrade again after only 18 months or so from the last investment. All JMO. Clark