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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (81718)	6/17/2000 1:05:00 PM
From: Spekulatius	Read Replies (2) \| Respond to of 132070

For a company with a fast growth pace, it is difficult to generate free cash flow. So the argument, that the DRAM producers do not generate free cash flow, cannot be used against them unless you look at the growth rates. However, even a quick analysis of the DRAM producers balance sheet does show, that they are not outrageously profitable ,as measured by the ROE even in the current boom. That would worry my, if i would own stock with a PE of 50 in a cyclical industry. DRAM is just not a good business. Compare this to JDSU, which growth at 100% + currently and still generates a bit free cash flow.