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To: tdl4138 who wrote (18037)	5/8/2000 2:48:00 AM
From: B Tate	Read Replies (1) \| Respond to of 118717

Dave I agree with you on 'you can't drive this car with the rear-view mirror' and that we are trying to evaluate the forward movement of the company. To that end your statement<<<I haven't yet decided if the ALSC management team is extremely shrewd or extremely lucky...for their timely investments.>>> is an appropriate area of analysis. I guess that my biggest difficulty at this point is the past operating performance of the management team. Without having to fund the huge capital investment (fixed costs) of the foundry business; with the advantage of having a 12 week purchase cost cycle for foundried product; excellent vision on the future of the industry via investments/board seats; why has there been such dismal losses over the last 3-4 years? They also should have had leverage with the companies they invested in. So, am I looking to buy a semi company (PE 122) that has been opportunistic with investments while the core business languished, or am I looking to buy an incubator(PE 1+) that has an anchor around its neck in the form of a company that historically has had difficulty being profitable? I might in fact be willing to do both, but need to set my own expectations of what I will expect out of the investment. Sure would be easier to figure out if they were two separate entities ;-) By-the-way, I don't subscribe to the theory of buying the basic business for free on the back of future profits of subsidiaries. Great examples of this that come to mind are CS and Seagate, Mr. Market just won't give the assumed multiples of the parts equalling the sum. Thanks again for bringing this one up, it has at least forced me to evaluate one of my "rules" that being - Plan a Target and Follow the Plan. Still digging ;-0 Speak with you tonight bernie