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

To: rjk01 who wrote (14863)	9/19/2000 1:49:34 AM
From: rjk01	Respond to of 60323

TSEM (sndk): in case anyone is interested Analyst Baruch Tzivin of Harel Capital Markets’s research department, rates Tower Semiconductors (Nasdaq:TSEM) High Risk Buy recommendation. Tower trades on Nasdaq at a $320 million market cap. Tzivin also sets a price target for the stock of $51 to $56, 95% to 114% above its current $26.1 price. Tzivin puts the company’s value at $640 million, 100% greater than its current market cap. If, that is, the Israeli government approves state support for the company's plans to build a new facility. Tzivin pictures two vastly different scenarios for the company. In the pessimistic scenario, the government will refuse to authorize a $300 million grant, killing the company's expansion plans. In that case, the company will go on producing in the existing plant alone. Its stock price on existing activity is $15 to $20, that is 24% to 43% lower than its market price, reflecting a company value of $180 million to $240 million. The other, optimistic scenario, is based on the assumption that the grant will be authorized and the company will fulfill its expansion plans. In that case, the price target set by Tzivin is $51 to $56, extrapolating to a market value of $640 million. Tzivin believes the likelihood of the second scenario is much higher, and thus sets the appropriate price target. Company revenues will increase 50% on 2000 Tzivin predicts Tower’s revenues for 2000 will total $105 million, a 50% rise compared with 1999’s revenues of $70 million. Tower’s losses in 2000 will come to $1 million, estimates Tzivin, compared with $15.5 million losses in the equivalent period. Tower Semiconductors makes custom made chips. Tzivin says its market grew 31% in the first half of 2000, and is expected to grow on following increased sales of Flash and DSP chips. He adds that the foundries market is expected to go on increasing its share in the total chip-making market from 20% to 50% by 2010. Tower Semiconductors is currently producing in an outdated factory in Migdal Ha’emek, and plans to expand by building a new plant expected to be among the most advanced in Europe. The new fab will thoroughly change the company’s income and expenses structure while significantly increasing the scope of its activities.