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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (7837)	7/24/1999 12:44:00 AM
From: Roger L. Chuchen	Respond to of 78834

Hi, Peter. I believe is #1 or 2 foundry in Taiwan. UMC is not a publicly traded company in the US, but Taiwan Semiconductor (TSM) is. If you check the stock quote of TSM, you'll see how hot the foundry business is right now. However, UMC is traded on the Taiwan exchange although I can't tell you exactly where you can find stock quotes on it. You know, try the following site: irasia.com and look for Taiwanese stock market

To: peter michaelson who wrote (7837)	7/24/1999 1:33:00 PM
From: jeffbas	Read Replies (2) \| Respond to of 78834

Peter, on ALSC, note the latest earnings release. The weighted average lockup period for the whole UMC block is 1.75 years in this notoriously volatile industry. The $585 million current valuation should be given some haircuts - at least the private placement haircut (of a public company) which is locked up for a year (subject to 144 rules), the haircut of a disproportionately large, foreign, stock investment on someone else's balance sheet not your own. I do not think this is nearly as cheap as GZSP was at 3 5/8, but bears watching. The key question is whether we would pay $300 million for a crummy $60 million business with a retained earnings deficit, plus $600+ million of restricted stock assets. My feeling is it is at fair value or a bit cheap. I like REAL CHEAP!