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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Jdaasoc who wrote (79231)	6/14/2002 5:22:39 PM
From: mishedlo	Respond to of 99280

Thanks JDA - I appreciate that. M

To: Jdaasoc who wrote (79231)	6/14/2002 5:29:02 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 99280

John, what exactly are you talking about, their sales went from $260 MM to $582 MM, more then double, of course their working capital (Inventories and accts receivable) would double as well. As a matter of fact their current DOS are an outrageously well managed 23 days (compare to 50 DOS for INTC), an outstanding job of cash management, and their inventories at 43% of sales, does not compare that badly with INTC either (at 36%), considering that they are fabless and thus must order ahead of time and hold some inventory. Compare that inventory to SSTI for instance to see what a bad inventory situation is. Half a quarter of sales certainly does ot indicate future write off. Are you short the stuff that you invent blemishes where they don't exist? I am more worried about 10% of their book being "air" (goodwill) then the structure of their working capital. A bunch of cash to carry them over hard times. Now, is the stock heading to the low $20', yes, I think so, but that has nothing to do with future major write offs (g). Zeev