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

To: neolib who wrote (4298)	10/28/2008 2:06:58 PM
From: Mike30	Respond to of 4590

"To notice that short-term we are taking more actions to rapidly cut all spending and reduce the need for cash. This includes salary reductions, cutting capital expenditures, freezing headcount and reducing administrative expenses" "The ASE transaction discussed by Bertrand should result in cash proceeds to Spansion, and we have several other similar opportunities that we are pursuing" " For Q4 we expect capital expenditures to be roughly $40 million" sO if all the things they said is going to happen, then we should not be going bankrupt and we should be able to make it through.

To: neolib who wrote (4298)	10/29/2008 4:20:30 AM
From: Joe NYC	Read Replies (1) \| Respond to of 4590

neolib, Was it really positive cash flow? IIRC, it was some other term which looked like net proceeds from operations but not subtracting ongoing capital expense or perhaps R&D or interest payments. It was definitely oddly stated. No, it was after the reductions of CapEx, which were pretty much planned. Meaning, Spansion is still planning on relatively low CapEx this quarter, and cash flow positive (if the quarter shapes up ok) includes CapEx (and R&D, interest payments). The problem for any little holders here, is that as the market cap drops so far below book value, the temptation for an inside supported deal to take the thing private at these prices rises, and there is not much the small stock holders can do about it. The rapid collapse in the last few days looks like this might in fact be happening. You might wake up tomorrow to see that management is backing a deal to take the co private at $0.20/share and its screw you. Yup, that's the danger... Joe