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

To: Jumpin Joe who wrote (611)	12/14/1997 8:26:00 PM
From: Gary Ku	Read Replies (1) \| Respond to of 1853

So far, almost everyone gets the conclusion that the trouble in asia, mainly in Korea and Japan will give the world economy trouble. But, think more thoroughly, how big Korea and Japan are? What type of business they are doing? Their collapse is good or bad to the world economy? Here are my answers, somebody may have more and better answers, please add on: In reality Korea and Japan economies are not as big as the number indicates. The conmodity prices are almost 4 times higher than US. The type of business they are in is practically reproduce someone else product, doesn't have much of contribution to the world economy. The collapse of their economy have bad effect short term, long term, it actually good for the rest of the world. This is based on the fact that their economy is export oriented. As long as we know that the collapse of Korea and Japan economy is bad only temporarily and the stock prices are dropped because of it already, it definitely is good buying opportunity. The economies of Korea and Japan don't represent asia's. The China and the rest of asia's economies do. Besides, the Korea and Japan's are export oriented, the rest are not. Now, with so many good buying opportunities, why buy TSEMF? TSEMF's share holders equity is $12.50 and $5.50 cash reserves and its share price only $8 3/4. How many companys have this kind of good value? The other reason is that TSEMF is helping company in the advanced designing area and new advanced designing center already completed. As company co CEO Nissan Cohen said he is delighted that we are entering in a new arena. Any stock has the possibility of going up or down. Even IBM, MSFT, Mot, you name it, have the same kind of possibility. But, when TSEMF starts to move up at this distressed level, the return is much higher percentage-vise.

To: Jumpin Joe who wrote (611)	12/15/1997 5:20:00 PM
From: Tom Hua	Read Replies (2) \| Respond to of 1853

However, in TSEMF's case, $5.56/sh in cash will definetly put a floor under its stock price in the short term. JJ, not necessarily. I have seen companies trading at 50% discount from cash. A case in point is TEAL, a software company that has $3/share in cash, book value slightly > $3, no debt, stock is $1.6. I'm not saying this will apply to TSEMF, but I wouldn't rule out a drop below 5 simply on the cash basis. BTW, TEAL looks like a good candidate for a rebound to cash level in a few months. Regards, Tom