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Technology Stocks : Semiconductor Packaging (SEMX) -- Ignore unavailable to you. Want to Upgrade?

To: DELT1970 who wrote (539)	11/28/2001 11:31:13 AM
From: DELT1970	Read Replies (1) \| Respond to of 545

This newsletter makes the case for a sale and it looks like the company and the Pfd. holders may be cooperating. Jim Salim Takes On The Task of rummaging through the basement in search of ideas that may be healthy for your brokerage account SEMX Corp. Nasdaq symbol: SEMX Current Price: $2.02 October 15, 2001 The concept of risk/reward always dominates my investment decisions. I look for companies trading at less than half the value a strategic buyer would pay in a private or public transaction. This usually involves microcap stocks that fall below the institutional radar screen. SEMX Corp has sales of seventy million dollars and a current market cap of approximately thirteen million dollars. The company's technology is outstanding, as confirmed by it's blue chip client base which includes IBM, Motorola, and Lucent, to name a few. The company sells products to the microelectronics and semiconductor industries. With a book value of $5.53 per share, a take out price of $5.50 to $7.00 would be a steal for a strategic buyer. The stock price has dropped from the $7.00 range to the $2.00 area as the US and world economies have worsened over the past year. The company recently hired Compass Partners, headed by Steven Waters, former Co-CEO of Morgan Stanley-Europe to sell one of its divisions. Compass will evaluate an offer from management and seek outside offers as well. The company is a perfect fit for a merger with a large strategic buyer. I feel the division will get sold shortly followed by a sale of the entire company. The stock sells at a fraction of its real value and management owns 25% of the company. Look for a sale in the $5.50 to $7.00 area. If I'm wrong and SEMX stays independent, it's a pure play on the economy. When the economy returns to 3% GDP growth, SEMX sales and earnings should explode. DISCLOSURE: Jim Salim, and entities he over which he has control, own stock in SEMX