Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Spansion Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (3564)	3/17/2008 5:55:29 PM
From: bobs10	Respond to of 4590

you: bought some STM April 10 puts as kind of a hedge to my Spansion position. I figure that if STM were valued according to any metric as SPSN is valued, it should be at 7 rather than 10+. Second, I think there's a good chance that Numonyx might not get done at all in March, or that STM will get less than half the cash they were supposed to get for their part of the venture. me: Probably not a bad plan. Yeah, getting near the end of the quarter and still no Numonyx. With money, supposedly being very hard to get, one has to wonder just who would be crazy enough to be interested in Numonyx? Should the deal not get done then what? It doesn't seem reasonable that INTC would continue to throw good money after bad, but who knows? One of the reasons I got out of INTC in the late 90s was because management was throwing money against a wall and seeing if anything stuck. INTC doesn't have a very good business record outside their core business. As far as I can tell the sole reason given for Numonyx was economies of scale, but then the scale continues to go the other way, quarter after quarter. And that's something that's only going to get worse as SP1 ramps. So what's the real reason for Numonyx except to give INTC/STM an out? I've been wondering just what business case INTC/STM are pitching to try and get other parties interested Numonyx? Personally, I think if the deal doesn't get done then INTC/STM will have to do some drastic soul searching. The result of which will be a much reduced Numonyx entity that will only participate where it can make money. Of course that wont happen now just because I said it might. There's not too may other options though and something needs to be done. I can't imagine anyone buying the businesses.