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Technology Stocks : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: Ken Muller who wrote (5744)	8/4/1999 9:11:00 PM
From: Ram Seetharaman	Read Replies (2) \| Respond to of 9582

If management was interested in really buying back 2 million shares, I wonder why they were indolent sitting on their rear end, when the stock was trading around $ 2 last year. A smart move would have been to buy the stock at the $ 2 -3 price range, rather than five times as much now! IMHO the buyback was a gimmick announced last year to gain investor confidence at a time when all the chip stocks got butchered last fall ( ALSC @ $ 2, LSI @ $ 12, ESST @ $ 2, VLSI @ $ 6! AMAT @ $ 23, XLNX @ $ 28, SSTI @ $ 3, ISSI @ $ 2, XICO @ $ 1, SVGI @ $ 6, KLIC @ $ 12). Unlike ALSC, ESST which also announced the stock buy back last Fall, had completed it too! ESST bought most @ $ 6 price to see it more than double! Now ESST is having a banner year with profits beating all expectations! If ALSC announces 2 million buy back, and completes it for an average $ 12 price ( total price of $ 24 million - a small fraction compared to the $ 600 million they will make in the UMC deal!), they will still make money. Management is allocating resources only to places where they see a good return, like the Maverick networks. To me that itself is proof of an ability to withstand the toughest of the markets and still make money. They don't play the fields where their returns are going to be 5 and 10 %, even if it is SRAM or DRAM or embedded systems. This strategy will help them maintain solvency and survive the worst of times (which are probably over by this spring 1999! ).

To: Ken Muller who wrote (5744)	8/5/1999 3:37:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

More analyst coverage coming: reply to an e-amil from the CFO: "Dear DJ: Needham & Co and Soundview are currently covering Alliance. Bear Stearns and H&Q have also agreed to begin coverage of the Company shortly. We will become more proactive this fall in talking with analysts. Alliance will not get any dividend from UMC that I'm aware of.Hope this helps. Dave Eichler" THIS IS THE DIVIDEND THAT UMC DECLARED A MONTH AGO. WHEN THE FINAL MERGER CONCLUDES, ALSC IS ENTITLED TO ALL DIVIDENDS.