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Non-Tech : Emcore Corporation (EMKR) -- Ignore unavailable to you. Want to Upgrade?

To: Saulamanca who wrote (410)	3/18/2008 12:38:59 PM
From: The Ox	Read Replies (2) \| Respond to of 640

Nice hatchet job. I'm not sure EMKR is worth $8/share at this point in time but I didn't get more then a few paragraphs into the report before I had red flags going up! As of last filing the company had approximately $30 mil in cash while they were burning $15 million a quarter. Ok. Lets stop right there. They conveniently left out the $42 million currently in A/R and the fact that the company is ramping up production in expectations for next quarter. Revenues in the 3rd qtr FY08 are expected to be 70% higher then the previous year and 30% higher sequentially from the current 2QFY08. Naturally, their cash burn is up while they gear up for the ramp in demand! Inventory has also been rising, which only makes sense if their demand is going to soar. I can't comment on the other issues they present. I haven't looked into any of EMKR's customers past or present to see how viable they are. I certainly agree with the initial statement that the company has lost hundreds of millions of dollars over the years and I can't remember the last time they had positive EPS for a quarter!! There also has been a dramatic increase in insider sales, cashing in on the high price of late. I doubt we'll really know if this "hatchet job" has more substance then fluff for at least another earnings release or 2, so its the perfect article for anyone who was short the stock. Its also the perfect timing for those short to raise a cloud over the company...right before their revenue increases are expected. Not to mention the market turmoil of late...what a great time to raise the uncertainty level for EMKR!!! For a company that has never made any money, it may be premature for analysts to have FY09 eps estimates of $0.33 to $0.64/share and for revenue ramps yoy of 70%!! However, if they do achieve these results, then the stock is extremely undervalued at today's price. I've traded EMKR many times in the past. I don't have a position in them currently. I always have them in my watch lists, so I may jump in at any time. One thing for sure, they've created massive volume today! My 2 cents worth, fwiw. TO