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 : Stock Swap -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (10703)	1/13/1998 11:30:00 AM
From: Andrew Vance	Read Replies (2) \| Respond to of 17305

AV--Well, Well, for those insomniacs that saw the CIG post and acted on it, got a cool few percentages. If you missed it, next time you need to stay up late so you can catch the early bird worm<GGG> Actually this mini-tech rally (oh Yeah) might have to do with MOT's announcement on the $$$$ they expect to spend in both Virginia and Dresden on capital equipment relative to 1997. I gues it is the cost of having a 300mm fab and a productionworthy 0.25u technology. Of course, they are partnering with Siemens on one of those fabs. A few of the earnings reports are in and the estimates are being missed by a few cents so far. Time to buy??? Not really. Time to watch??? Unfortunately, Yes. Why? This goes back to the Berings Bank Debacle. You have people reacting to stuff they should not be reacting too. Take ATML for example. They believe that the Asian currency issue will actually benefit their company over the long term. Question: If I read things correctly, ADPT has about 110 million shares outstanding since it has a market cap of close to $2.3 billion. If this is true and if they still have over $500 million in cash on the books, why not invest in themselves with a massive stock repurchase plan. Cash sitting in the bank does them no good while using $200 million to buy back 10 million shares (very aggressive) could reduce the float by more than 10%. That is, if the market capitalization reflects all shares in the float. What better investment than to invest in oneself if they truely believe their high end business is in great shape. ADPT CEO seems to think their recent issues are more to do with a write down of product in the hands of its distributors. When the market recovers or the distributor products are sold off, couldn't they reissue the shares from the treasury in a secondary offer at, say $40, and bank an additional $200 milllion in cash gains. This instead of letting "the Street" bank the $200 million in price appreciation. Andrew for the company.