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Technology Stocks : FSII - The Worst is Over? -- Ignore unavailable to you. Want to Upgrade?

To: Marc Bejarano who wrote (2555)	10/13/1999 3:42:00 PM
From: Marc Bejarano	Respond to of 2754

i just listened to the call. i think it's definitely worth your time checking it out. they do a decent job explaining the revenue trouble they've had in resist processing, lately. namely, that National cancelled a bunch of orders when they decided to outsource a bunch of stuff to taiwanese foundries and that LG semi sales have been put off due to their merger. other interesting things include a discussion of the metron ipo. currently, fsii is claiming ~$14 million on their books in investments in other companies. this includes mfsi and metron. mfsi is only $1 or $2 million so that leaves about $12 million as what they are valuing their 30% share of metron at, currently. they will be selling shares for the ipo to put them at ~20% ownership after the ipo. if the ipo is supposed to generate ~$50 million, any guesses as to how much will actually be floated? maybe 30%, 40%? if fsi is giving up 10% and the other big partner (integris?) is doing the same, then this should be ballpark... let's assume that $50 million = 50%. fsii's share would then be $20 million with these conservative numbers. so on the books, the value of fsi's stake will have to go up... in any case, i'm still holding this dog... something about having a cash-rich minnesota company with conservative management makes me sleep better at night when owning anything in this volatile segment... not that this has helped, so far... fwiw, marc