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

To: BUGGI-WO who wrote (3706)	4/2/2008 5:06:56 PM
From: KeithDust2000	Read Replies (1) \| Respond to of 4590

BUGGI, numbers look ok to me relative to expectations and the fact that the market has already begun focussing on the future (i.e. possible/announced price increases in the DRAM/NAND arena). Their cash position looks pretty comfortable, relative to some other memory companies out there.

To: BUGGI-WO who wrote (3706)	4/3/2008 1:53:24 PM
From: BUGGI-WO	Respond to of 4590

@OT - MU // Morningstar Update blogs.barrons.com Important comment: " He says valuation remains “compelling” at 0.7x tangible book value. " The problem here, how the next quarters will look like - for the next quarter, I'm seeing the same QoQ, the quarter after that is very unknown -> all is unknown, but I agree, that a 0,7x book number is low, also from an historical point. Thats leads me to SPSN -> I don't know, why one shouldn't apply also such a metric here? @SPSN - Morningstar Update " Analyst Note 04-02-08 On March 31, STMicroelectronics and Intel announced that financing transactions required to complete the previously announced spin-off of each firm's respective NOR flash assets into an independent joint venture named Numonyx had closed. We had extolled the benefits of the plan for STMicro (in notes published May 23, 2007, and Dec. 10, 2007) and are thus happy to see that the deal has finally been consummated. In our opinion, issues regarding deal financing were the likely sticking points in keeping the transaction from closing in the second half of 2007, as originally announced. In the end, Intel and STMicro had to guarantee bank loans to Numonyx underwritten by two Italian institutions. In addition to helping STMicro's profitability and returns on invested capital, we believe it may also end up giving a boost to NOR flash giant Spansion. Spansion, a carve-out from Advanced Micro Devices, has struggled to turn a profit since it went public in 2005. We believe the pricing pressures that have eaten into profitability at Spansion and in the NOR sector in general can be at least partially attributed to an overly crowded market. Consolidation of Intel and STMicro's NOR operations into a single stand-alone entity may bring about more-rational price competition and, in turn, allow profit margins across the board to increase. ... " BUGGI

To: BUGGI-WO who wrote (3706)	4/3/2008 1:53:25 PM
From: BUGGI-WO	Respond to of 4590

@OT - MU // Morningstar Update blogs.barrons.com Important comment: " He says valuation remains “compelling” at 0.7x tangible book value. " The problem here, how the next quarters will look like - for the next quarter, I'm seeing the same QoQ, the quarter after that is very unknown -> all is unknown, but I agree, that a 0,7x book number is low, also from an historical point. Thats leads me to SPSN -> I don't know, why one shouldn't apply also such a metric here? @SPSN - Morningstar Update " Analyst Note 04-02-08 On March 31, STMicroelectronics and Intel announced that financing transactions required to complete the previously announced spin-off of each firm's respective NOR flash assets into an independent joint venture named Numonyx had closed. We had extolled the benefits of the plan for STMicro (in notes published May 23, 2007, and Dec. 10, 2007) and are thus happy to see that the deal has finally been consummated. In our opinion, issues regarding deal financing were the likely sticking points in keeping the transaction from closing in the second half of 2007, as originally announced. In the end, Intel and STMicro had to guarantee bank loans to Numonyx underwritten by two Italian institutions. In addition to helping STMicro's profitability and returns on invested capital, we believe it may also end up giving a boost to NOR flash giant Spansion. Spansion, a carve-out from Advanced Micro Devices, has struggled to turn a profit since it went public in 2005. We believe the pricing pressures that have eaten into profitability at Spansion and in the NOR sector in general can be at least partially attributed to an overly crowded market. Consolidation of Intel and STMicro's NOR operations into a single stand-alone entity may bring about more-rational price competition and, in turn, allow profit margins across the board to increase. ... " BUGGI