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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: thecalculator who wrote (14469)	9/3/2000 7:39:39 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 60323

OT Hey, relax a little, OK? No need to be abrupt. You stated in your post that SNDK will have 20%, since ALSC invest the same $75 MM according to your own figures that should be 40%, without Toshiba and TIC. I did not come all over you for misstating TSEM's own figures, just because you wanted the SNDK followers to pay more attention to TSEM due to that supposedly 20% share. TSEM release, however cited 30% to Israel Corp, 10% to SNDK and another 20% to other investors, thus my number of 35 MM shares is quite conservative. Don't be surprised if by mid 2002 the share count exceeds 40 MM, with a bunch of options they may give to part of the 1000 new professionals coming on board. My number of $350 MM sales TTM by mid 2002 is extremely generous, considering that according to TSEM's releases, their current TTM sales is less than $100 MM and mid 2002 is barely 18 months out, and Fab 2, will barely be in the process of debugging, if Mr. Murphy does not play its usual games. As for a PSR of between 1 to 1.5 at the trough of a semi cycle, TSEM itself sold at a PSR of close to 1 in the last 12 months (low just under $7 with TTM sales of about $100 MM and about 13 MM shares outstanding then). As for "when I'll buy", I probably will never buy, unless it becomes a very uncommon value (back to this year's low). The reason is that contract fabs that do not have their own end products, but manufacture for others, have by necessity lower margins than the fabless companies they serve, and furthermore, they do not control their own future in the same way that companies serving end demand do. You asked for my estimate, I was kind enough to show you how I got it, no need to be angry or aggressive. Have a good holiday Zeev