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

To: Zeev Hed who wrote (14494)	9/4/2000 3:12:44 PM
From: thecalculator	Read Replies (1) \| Respond to of 60323

If $550 MM can be loaned from a bank (have you ever seen a bank loaning out $550 MM to a company with net equity of under $150 MM?). Maybe Yoav has a different banker than yours, Zeev. Nonetheless, banks do it all the time for homeowners, particularly for those buying homes in a lucrative market. <g> companies like ALSC do not have to take production, Well then, that will be great for companies like SanDisk that cannot meet capacity fast enough. (Nonetheless, Tower still gets the $75 million from ALSC.) If indeed they are going to fund this with $550 MM in debt, that will put the company at potential risk of not surviving, just like another Israeli semi outfit (I think its symbol was ISSI?) that went down the drain. The huge difference here from any precedent is that these guys have TIC behind them. And I venture TIC has already done considerably more research than you, and they likely do not forsee a Tower that will "go down the drain". Conversely, I forsee this happening: In 2003 we are expecting to generate at least $300 million from cash from operations and considering ...you have to take into account that a substantial part of the investment, in fact more than $400 million, is going to be done only in 2003, and you hopefully understand that it is far from this nightmarish picture to a bank that you are trying to paint. I do see having TIC as a major backer to be a huge positive leading toward success here. As for Fab 1 generating $100 MM, I doubt this is each year, from what you cite this is cummulative, and hopefully they can do it. They just plugged in several millions to upgrade the capacity of their Fab 1. The point remain that the date at which Fab 2 might be ready to open (early to mid 2002?) will be smack in the depth of a semi down cycle, Okay, Zeev, we get your point...you will choose to look at the glass half-empty....I will choose to see the possibility of a cup overflowing: For example, Cahners In-Stat Group says: Wireless to Drive Semiconductor Revs to $53B in 2004, Firm Says ... As users demand more functionality, the pressure to integrate more memory, better displays and multimedia will boost semiconductor revenues from $13.1 billion this year to $22 billion in 2001 ...from $38.7 billion in 2003 to $53 billion in 2004 messages.yahoo.com So where is the slow-down???