To: Robert Florin who wrote (557 ) 12/7/1997 1:20:00 PM From: jtechkid Read Replies (1) | Respond to
regarding tower, i have followed the company since before it even it went public. the fact is its in the best position it has ever been. the stock is mainly down because one guy, andy neff of bear downgraded the stock and lowered estimates because of one line sentece of limited visibilty. the facts, andy neff has been dead wrong with the stock and should not be viewed as a credible source regarding the stock. remember, neff and bear did a 3 million secondary at 29(the top) at the end of 1995 right before downturn in semis. also, neff had tower earnings of only 53cents at the beginning of this year. tsemf beat those estimates by over 100% in the first two quarters. the good news is bear clients are listening to him which creates a screaming buy. i talk to the top management weekly and was on the conference call and all the management said the visibilty was not clear and the 1998 numbers(1.75) might be al little high. remember, this management is ulta conservative and always puts disclaimers with the future. i heard the management called neff and asked him where you get 1.00 dollers foe 1998 and he said it was and arbitrarily number. this is who eveybody listens too? also, his report had alot og blah, blah, but he did say the company should stay at least over book value. i believe tower could hit 40 in 1999,heres how? tower did around 33miliion in sales with margins around 26% and eps about 40cents. as the management said is their goal is to produce proprietary products with higher margins and this has been very well recieved by its new customers. by the end of 1998 i would not be surprised if tower had a quarter of 40 million in sales and margins around 37-40%. also, tower is a cornerstone or blue chip company in israel and will get tax breaks and government grants in buildind a new plant in 1998-1999. also, you will see a major company mot, hwp(does have a good relationship with) take and equity partnership in tower and the new plant. also,greed, wall steet will pump the stock up because tower will either do a secondary(3million at29 in 1995) or convertible debts offering to raise some of the money for this plant. tower at 35 -40 is not that expensive and they same powers to be that push yhe stock down will run the stock because of investment fees. i see the stock trading between 12-15 at the beginning of 1998 and over 30 by this time next year then you will see on oferring, then sell half yor positions. also, i like dssi, the parent company of tower alot more. it tades at 5 with and 8 book value that has alot of new products that could take the stock over 15 next year. dssi purchased tower for basicly nothing, the own 3250000 shares of tower and controls the board. dssi has basicly 5 alone just in tower stock.
