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Technology Stocks : TranSwitch Corp: Will they get Zenith Business? -- Ignore unavailable to you. Want to Upgrade?

To: riposte who wrote (635)	6/13/2002 12:09:14 PM
From: The Ox	Respond to of 669

For discussion purposes: TXCC restructure/value analysis Write off 80 Million in assets: 61.5 goodwill 4.5 inventory 14 other assets --- 80 Million total Total assets lowered from $430 Million to $350 Million. Subtract total liabilities from cash: $240 - 160 = $80 cash left over. (about $0.88/share) Total equity left in the company = $190 or just over $2/share. $80 cash + $110 other assets (property, A/R, etc.) It would seem to me that the company should put itself up for sale for anything over $2/share. Intellectual property + net asset value should make this company very attractive to the "right white knight". Accumulate 5% of the company now, while the stock price is well below a dollar per share then make a tender offer. At a $17/million per quarter burn rate - cash will be gone in 5 quarters and at $12/million per quarter burn rate - cash will be gone in 7 quarters. However, there will still be over a $1/share worth of "assets" on the balance sheet.