Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John F. Poteraske who wrote (584)	12/12/1997 4:12:00 AM
From: Jeff Bond	Read Replies (1) \| Respond to of 886

OFF TOPIC - John, Surface look at SFAM was pretty nice, based on: 1. P/E is very attractive compared to industry 2. debt/equity = o 3. book/share = $11.38 4. sale growth %(1 yr) = 35.5% vs. industry 15.9% 5. Pirce/sales ratio = 1.57 vs. 1.54 (let's call this a wash) 6. Net % Margin = 11.6% vs. 5.9% It makes me want to dig a little deeper based on: 1. Komag and AMD are 25% of their total business 2. Future earnings growth % is low compared to industry average 3. ROE = 13.2 vs. 20.9 (why is this so far off?) It appears there is more to be happy with, than sad about. However, I did not get a chance to look at the news yet, or SEC filings. If these show no real killers waiting to occur, then I think you have a nice opportunity with SFAM. I think they should be working hard to make ROE higher; the low number may suggest the company is used to living well, and locked in that mindset. I also consider it important for SFAM to diversy it's customer base, working to develop a lower dependence (25%) on Komag and AMD. I cannot offer anything else at the time, but in light of current activity, my guess is there is time to think about this for a little while. Regards, JB P.S. IBD is hard to beat, 3-years of morning doorstep delivery makes it even better.

To: John F. Poteraske who wrote (584)	12/14/1997 9:08:00 PM
From: Todd D. Wiener	Read Replies (1) \| Respond to of 886

John- KELL has institutional ownership of about 50%. I don't care much for its financials, though. Low current ratio and high debt. Not terribly cheap, either. I have had UPUP (United Payors & Providers) on my watch list for a month or two. I haven't had a chance to do much research on it, because I've been busy losing money on my chip-equip stocks! Speaking of the devils, I'd recommend waiting a bit on SFAM and other equip stocks. Although they are very cheap, even considering a slowing in business for 1998, they may fall some more. SFAM just broke a major support level, and most chip-equip stocks are close to 52-wk. lows. In a few months, they will have bottomed and will be safe to accumulate. Unfortunately, I pre-empted this bottoming pattern. Regardless, many of these companies are fundamentally sound and have great prospects. It just might be wise to wait until Wall Street begins to agree. Todd