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Technology Stocks : SILICON STORAGE SSTI Flash Mem -- Ignore unavailable to you. Want to Upgrade?

To: capt rocky 1 who wrote (1432)	12/21/2000 10:03:08 PM
From: hueyone	Respond to of 1881

re: can you tell us why when the stock was 25 or so ssti was trying to do a stock issue which would have diluted the stock? Cap'n Rocky, The company did not announce what they were going to use the money for from the secondary offering. As Sam says, they likely saw some large opportunities ahead of them that would take big chunks of money to accomplish. It could have been for any number of things---investment in manufacturing, purchasing another company, etcetera. The company eventually withdrew the offering due to poor stock market conditions which were occurring across the board in the semiconductor industry. There was no point in selling SST shares too cheap. This was a setback, but a good management would adjust their game plan and find another way to continue to move the company forward. I trust this management is moving the company forward with a new game plan now. Best, Huey

To: capt rocky 1 who wrote (1432)	12/22/2000 12:15:17 PM
From: tayspop729	Read Replies (1) \| Respond to of 1881

Rocky, ...can you tell us why when the stock was 25 or so ssti was trying to do a stock issue which would have diluted the stock. what did they think they needed the money for? that announcement was the catalyst that started the slide. even when they announced no new issue it didn't help. Its my recollection that SSTI was proposing the new stock issue and the offering of the convertible debt for acquisition purposes. I tried to find a link but was unable to...but I believe that was the intent of the new issue. As far as this being the catalyst for the slide, I have to disagree. As it can be seen from my post of yesterday, SSTI's unfortunate slide corresponds directly to the action within the semiconductor sector as a hold. The timing of this decline with the sector falling was merely coincidence, IMO. I shake my head each day until it throbs over what I perceive to be an incredible opportunity, wondering what it is that I'm missing. But I keep telling myself that just before things turned south, this was a stock sporting a PE of 60...all this about commodity products and the lawsuit with Atmel is nothing but noise. I doubt very seriously that we will see such strong PEs again in the future but still think its deserving of something resembling that granted to the market on average. If so, there's money to be made here. JMHO. Regards, Scott