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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: CHUCK IRWIN who wrote (7294)	11/4/1997 12:11:00 PM
From: Bill Lin	Read Replies (1) \| Respond to of 14577

Chuck, i'm guessing that this isn't the bottom. granted the total asset value is around $508mm, but you need to deduct liabilities and look at Shareholder's Equity. Retained earnings are placed there (which $0.47 will be deducted.) net income for first 9 months was $0.43 or $22mm, so we need to reduce SE by that amount. So... SE from last 10Q was $289,615k plus Q3 income of $3.9mm minus $22mm = $271mm (approx.) number of shares outstanding is 52.38mm book value to shareholders = $5.181. USC is held on books at $112mm/52.38mm = $2.14. however this is already included in SE number. the argument is that USC holdings is undervalued and is worth at least $2.25 to $4.50/share. if $2.25/share, then Book = $5.29 if $4.50/share, then book = $7.54 a 23.75% ownership of USC at $112mm give its a base book value of $471.5 million US. times NT 30 = $1.417 billion NT. To be NT $3 billion, you will get the $4.50 holding price. So, IMO, the SAFE value is $5.25, and the speculative book value is $7.50. i'm guessing the "sell at all cost" value during dec. 20-jan 5 is $4. i hope you make a 100% profit at your 7.25 buy in, cause then i'll be not negative. BL