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

To: Ram Seetharaman who wrote (5745)	8/4/1999 9:46:00 PM
From: Charles R	Read Replies (2) \| Respond to of 9582

Ram, <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. > They didn't have any money until Broadcomm bought Maverick. If Broadcomm did not buy Maverick, they still wouldn't have any money. <Management is allocating resources only to places where they see a good return, like the Maverick networks. > You seem to be very upbeat about the management finding another Maverick. I am not. Lightening doesn't usually strike the same place twice. One can easily argue that Maverick investment returns is a one time event. I do not consider their investments into UMC and CSM as investment savvy - I see it as management's attempt to secure capacity in a fab that turned into a gold mine. A cursory check on the industry will show that most other fabless players of consequency made one investment or the other in fabs to secure capacity. As the Wall Street saying goes - bull markets can make anyone look like a genius. It would be a real shame if the management cannot see the value of their own stock and go around funding speculative ventures. The more they delay on the stock buyback, the more I would attribute it to lack of investment savvy. Chuck