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

To: Return to Sender who wrote (3605)	6/22/2002 11:27:39 AM
From: Kirk ©	Read Replies (2) \| Respond to of 95530

the question to ask now is "why below book?" Is it because AMD is still depreciating fabs for 1um devices while the market wants 0.2um and lower devices? :) Kirk

To: Return to Sender who wrote (3605)	6/22/2002 2:42:20 PM
From: robert b furman	Respond to of 95530

Hi RtS, I'm part owner of a 61 year old corporation (GM dealership). When comparing a companies book value - many corporations have operations in leased bldgs.Some of the older corporations have tremendously valuable assets carried at an old cost and it is depreciated from there.If I had to go buy and replace our 7 acres and 5 buildings on the busiest corner of the county - well I'd need one heck of a banker and a great tax man.We carry the realestate on the books at what was paid back in 1955.That's part of our book value!! If one was to value some of these long running firms book value to replacement cost value the book value to stock value would be an even more compelling story. A good example of this is Cohu.This year they sold their 20 -30 year old facility just outside San Diego and booked a 14 million dollar gain on the sale.They then paid that cash for a facility 12 miles out in Poway that is newer more modern one building vs 3 separate buildings and three times as large. This last quarter they wrote off the majority of the real estate gain in obsolete parts adjustment.Nice tax minmization move that allowed them to keep some of the gain. Now this new cost basis once again gets depreciated - all the time book value never really changed much - but what of the value of the company? Some day when A or Amat tender their stock in a merger - we'll know.gg Bob