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

To: auriculatus who wrote (31706)	7/21/2006 7:30:33 PM
From: The Ox	Respond to of 95737

With many giving away 25% or more of their quarterly profits to insiders, these companies probably deserve a much lower price to book then in the past. At a certain point, they become attractive but I think that is well below 2 if they continue to pay themselves first and second, with the shareholders running a far third. For example, a company that gives out no dividend and earns 20 cents in a quarter but 6 cents goes to insiders for a net EPS of only $0.14/share quarterly or $0.56 on a yearly basis. What type of value should the company have? Even if they are going to increase EPS by 30% year over year, why should they get a multiple higher then 10 or 15 since they are only interested in getting the insiders fat. If the shareholders make a few bucks, all the better but that is NOT the focus. Regarding revenue, if revenues have gone up 5 times in the past 4 years, yet EPS has only gone up 50% in the same time frame, its just another red flag on why one shouldn't be investing in these SCE companies. The entitlement mentality that has completely overshadowed Silicon Valley has to change. Like I have stated before, issuing options as an incentive to new hires is one thing. Handing them out every quarter should be stopped or at least they should be a small percentage of what's happening today. Taking 5% of gains and giving it to the employees is one thing. Taking 28% of gains is just unacceptable and the market is finally waking up to the excessive greed rampant in high tech board rooms and front offices.