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

To: Cary Salsberg who wrote (9300)	4/6/2003 3:39:24 AM
From: StanX Long	Read Replies (1) \| Respond to of 95617

Bush's Tax Plan Could Make The Dow 10,000 John Rutledge, Rutledge Investment Strategies, 04.04.03, 12:30 PM ET forbes.com NEW YORK - The stock market may have more to celebrate than the pending victory in Iraq. The president's plan to cut tax rates, relegated to the back burner by the media in recent weeks, is nevertheless the biggest event to hit the U.S. economy and asset markets since the Reagan Plan in 1981. I was in Washington then as a member of the Reagan economic team, participated in the planning and marveled at its success. President Bush's proposed tax cuts rank with President Reagan's as a tonic to restore growth to the U.S. economy. I am talking about as much as 1,700 points on the Dow Industrials. Sign up for Forbes' Free Investment Guru Weekly e-mail. The most important part of the plan is ending the double taxing of dividend income. We may not realize it, but the U.S. has the highest taxes on capital in the industrialized world. By reducing the return on investment, these high taxes inhibit job-creating growth. Reduction or elimination of the double tax on dividends would work by raising the aftertax return on capital by nearly two-thirds for profitable, tax-paying companies. It would increase equity values by 10% initially, with the potential for another 10% to 20% as companies adapt to the new tax rates. We're talking here about the potential to put the Dow Industrials back over 10,000. The reform would add $1 trillion to net worth initially, with a further $2 trillion in subsequent years. And it would make capital available to companies to buy new tools and equipment to make their workers more productive. The dividend tax cut is not about Wall Street; it is about Main Street. U.S. workers are the most productive in the world. They are productive because they have the best training and the most modern tools. The dividend tax cut will bring more tools to workers to create more high-paying jobs. Increased dividends will also exert powerful disciplines on company managers, which will help to restore proper governance to businesses and confidence among investors. How? By discouraging hoarding of profits and subsequently throwing the money away on overpriced acquisitions and excessive executive perks. Companies of all sizes have already begun to announce new dividend policies in anticipation of the tax cuts, from giant Microsoft (nasd: MSFT - news - people ) in January, to IHOP (nyse: IHP - news - people ) last week. What does it mean that Microsoft is finally paying a cash dividend? That its savvy management understands that, in the future, investors will no longer be satisfied with pie-in-the-sky but will want to see a real cash return on their investments. The revenue lost to the government is roughly $30 billion per year, though this will be substantially offset in the long run by increased tax revenue created by faster economic growth. In a $10 trillion+ economy, the lost revenue is a pittance. But the benefits of the tax cut will be enormous. Excerpted from a recent special report by Rutledge Investment Strategies.

To: Cary Salsberg who wrote (9300)	4/6/2003 11:37:30 AM
From: The Ox	Read Replies (1) \| Respond to of 95617

Hi Cary, I posted the year old announcement to give you more "color" on their move to China. They didn't complete most of their move until the 4th qtr 2002 and the move wasn't without substantial cost. Value or turnaround, you can call it what you wish and this stock is clearly not for everyone. I call it a value play because I believe there is more to this company than cash, inventory and plant assets. Gross margins should improve dramatically this quarter per company guidance. If they achieve the high end of their guidance (zero to minus 6%) then they will be at or very near break even from a cost of revenue perspective. Even with this improvement, SGA+RD still will cause the company to lose about $0.24/share this quarter. If you don't see an opportunity here, then pass. The stock chart has suggested for months that all of your concerns are valid and that my view of the company is faulty. I've taken the risk and I thought others might want to take a look here, too. No big deal. Best regards, Michael