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

To: Ram Seetharaman who wrote (5994)	9/18/1999 1:06:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

UMC closed @78.50 + 1.00 vol 29,609,948

To: Ram Seetharaman who wrote (5994)	9/18/1999 7:33:00 PM
From: John Miz	Read Replies (3) \| Respond to of 9582

This news goes back to around July 29th, but for any new investors tuning into the story, I think it may be a nice read if they have not seen this piece...John NEW YORK -(Dow Jones)- Investors on Thursday learned that Alliance Semiconductor Corp.'s holdings in other high-tech firms are worth a lot more than the company's core business, and they caused a surge in the company's shares. Rick Schottenfeld, of New York-based Schottenfeld & Associates, discussed the value of the San Jose, Calif.-based memory-chip maker (ALSC) on financial-news TV channel CNBC. Speaking later, Schottenfeld said the assets on Alliance's balance sheet are worth about $21 a share. He values the company's core business at about $3 a share. Alliance's shares rose $1.38, nearly 15%, to close at $10.63. Volume was 4.3 million, far higher than the daily average of 600,700 shares. Alliance's core business focuses on producing static random access memory, or SRAM chips; dynamic random access memory, or DRAM chips; flash memory and embedded memory and logic chips. The products are used in computers and celluar telephones. Schottenfeld said Alliance's holdings in United Microelectronics Corp., a Taiwanese public company, are worth about $600 million. In June, United Microelectronics announced it would merge four semiconductor wafer foundry units, two joint ventures, United Semiconductor Corp. and United Silicon Inc. into United Microelectronics. Alliance stands to receive 283.3 million United Microelectronic shares in the deal. Alliance also holds a 2.5% stake in Singapore chip-maker Chartered Semiconductor Manufacturing and about 485,000 shares of Irvine, Calif.-based Broadcom Corp. Schottenfeld said the Broadcom investment equals about $1 per share in value for Alliance. Alliance officials weren't immediately available to comment. General sentiment toward semiconductor stocks has recently improved, said Waldron & Co. analyst Terrence McCrary. He believes the pick-up in volume of memory and logic chips has helped to offset the lower per-unit prices.