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Technology Stocks : Speedfam [SFAM] Lovers Unite ! -- Ignore unavailable to you. Want to Upgrade?

To: TEColeman who wrote (2622)	2/2/1998 11:50:00 PM
From: Michael Burry	Read Replies (2) \| Respond to of 3736

So with Speedfam's huge working capital requirements and additions to NWK each quarter, its operating cash flows have been decidedly negative for many quarters. Add to this the heavy capital investment required to be a semi equip maker, and cash flows get worse, requiring Speedfam to repeatedly dip into the stock markets to finance its growth. Now AR has ballooned, portending poorly for potential asset writedowns in the future. The business economics here seem poor. Can there be a light at the end of the tunnel in terms of less need for capital expenditure/R&D? Not likely given the industry. Interesting case. Comments? Mike Mike