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

To: steve olivier who wrote (2813)	1/8/2000 5:05:00 PM
From: physicsdh	Respond to of 2920

Steve/Jeff, I have a hypothetical question. Lets say the fab is sold as suggested by Jeff/others and it sells for a lot more than its carried on the books. Maybe they get 75M. Lets say the sale is not final until Q3. Lets say the sale is announced in Jan. How would this be handled? Would they take a write-down now and recoup it when the sale is finalized. Wouldn't the amount of the sale over book value be treated as a capital gain? If they had a capital gain of say 35M from sale of the fab how much of their tax credits could they use against that sale? All of them? In this scenario couldn't they take a write-off in Q4 and bring in all the tax reserves onto the books. This might mean that the earnings next year would be at the higher tax rate and make more sense of the SNDV projection of $.55? Of course it would also mean tons of cash for Xicor. Thoughts?

To: steve olivier who wrote (2813)	1/8/2000 9:41:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 2920

Steve, my comment is repeated below: "I personally would not buy XICO at these prices, although I put my own forecast of $25-30 for 2000 here a while ago. In my opinion, the stock is going higher. However, I am sensitive to risk and am basically a buyer of stocks at value prices. XICO is not in that category anymore - but a growth/momentum stock now." I made a personal comment as to the value. When I buy this kind of stock I look for the potential of 5-10 times on my money (as I am with that highly speculative stock I mentioned). If you understand a situation well, and you believe the odds are in your favor, you should always take a 5-10 times potential even if the risk is BK. I agree that buying XICO now is less risk than a year ago, in return for less reward. Also, as far as I am concerned a stock which is up 15 times since the Spring and running 10 times the average daily volume then is a "growth/momentum" stock. Your point is well taken that most such stocks have prices that have far overshot reality, whereas Xicor has not.