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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (1459)	12/22/2001 5:23:15 PM
From: The Ox	Read Replies (1) \| Respond to of 95442

Let's assume that with a 20 year loan, they got a standard "mortgage type" interest rate, so I would suspect they are paying around %6 (or slightly more). I guess one could infer that they are comfortable with their ability to pay back this loan or else they would have increased their recent convertible offering to gain the additional capital. If they are taking out these loans to keep dilution down while still having access to "much needed" cash and are comfortable with their ability to repay the loans, then it is probably an ok move while the industry is in the dumps. There are many reasons to raise cash and it's difficult to speculate on why their doing this right now. I would think that they are making sure they can weather an extended downturn unless they have an acquisition that would like to make while the sector is depressed. Whether or not we can assume that they see "negative guidance" for the industry's fundies is just speculation.