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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (9830)	5/19/2001 9:08:47 PM
From: WTSherman	Respond to of 10921

<If they keep their burn rate steady, their cash position seems more than sufficient to run for over 4Qs< Actually, its more like *4 years*! If they were to continue to lose money at the rate they did this last quarter they would lose about $23M this year. They have approximately $125M in current assets above and beyond their current liabilities(that's counting cash, short term investments, pre-paid expenses and accounts receivable). Moreover, they announced cutbacks in manufacturing and employee salaries that should reduce expenses by about $1M/Q. Like everybody else involved with wireless and telecom they're business is really hurting and will probably stay that for 2 or 3 more quarters. However, their incredibly strong financial position pretty much assures they will weather this cycle. As I said before, subtracting out all of their debt and disregarding their property/machines, etc., they have about a net of $11/share in liquid assets. Even at the current reduced sales rate they will probably show $70-80M in revenues over the next 12 months, which means the company's stock is selling for about .5 times the current lousy sales. A buyout @ $25 would give the buyer a company at less than a net cost of 2x sales. Needless to say, that's a pretty tempting figure for lots of folks in this business. My feeling is that the bottom line is that either the true value of their business is reflected in the share price soon or they get bought out. Either way its fine with me...