Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Asyst Technologies (ASYT) Good Value/Where is the Bottom? -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (2030)	6/27/2001 6:56:04 PM
From: ELH1006	Respond to of 2313

N, Brook's did the same thing not long ago by raising some $175 million via convertible debt. At that time Brook's had $147 million in cash and some $288 million in working capital ($16 per share). Both of these companies must be looking to acquire something fairly substantial. What puzzles me when comparing Asyt to its two main competitors, Brks and Pria, is how under valued it is when you take a hard look at the pre-tax operating profit to the current price (after deducting the current assets, net of all debt). For the past twelve months, Asyt had $73.7 million in pre-tax operating earnings versus $15.9 for Brks and a negative $41.5 for Pria. Furthermore, the eps for Brks is very skewed as a result of its heavy contribution from its investment income. I have prepared a rough calculation as to how these three line up as of 3-31-01. Asyt Pria Brks Today's closing price $12.93 $15.15 $43.89 Current assets less all debt 6.74 5.74 15.07 Net $ 6.19 $ 9.41 $28.82 Pre-tax operating profit in millions-last 12 months 73.7 (41.5) 15.9 Per share 2.11 (1.73) .88 Sales, last 12 months in millions 491.4 350.5 403.4 Eddie

To: Q. who wrote (2030)	6/27/2001 7:28:22 PM
From: James Calladine	Respond to of 2313

WHY THE NEW CONVERT ISSUE? Interest rates are lower than they have been. Share prices are depressed. They may be attracted to getting the money at a low interest rate, putting a modestly low conversion price on the security and if they have a fairly early call date, get everybody to convert, rather than have to redeem, not too far down the road. This way they get to use the money however they need, probably never have to pay it back other than some interest, and it all comes off the back of the common shareholders. However, if the share price sharply rises anyway, the argument will be, the shareholders will never notice the dilution! Wouldn't you do the same if you thought the mathematics worked out? You could even argue that the shareholders are better off because of having the use of the money for capital expenditures, etc.--thus investing to make you more profits! However, the bond purchasers have a perfect hedge, and as soon as the price on the common rises high enough, they will short the shares, knowing that they are already covered by the conversion feature. All a good idea? You judge. Namaste! Jim

To: Q. who wrote (2030)	6/27/2001 9:25:36 PM
From: Bill Hermesmann	Read Replies (1) \| Respond to of 2313

N, thanks for introducing a modicum of intelligent analysis regarding the ASYT convertible bond issue. Not that I contribute much of value to judging the stock but why ask Brian??? I would be glad to provide the latest press releases for the thread and probably in a more timely fashion thus making his posts superfluous. Anyways, I would not take this convertible issuance as a negative, except for the short term option players. I prefer to think that the company knows a cheap way to acquire cash when they see it. Herm