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

To: Michael Burry who wrote (2625)	2/3/1998 7:53:00 AM
From: HoodBuilder	Read Replies (2) \| Respond to of 3736

How could R&D be reduced when SFAM is building a new state of the art R&D center?

To: Michael Burry who wrote (2625)	2/3/1998 8:08:00 AM
From: JZGalt	Respond to of 3736

Although what you cite is true, you forgot to mention expanding (or at least lumpy) profit margin increases partially offsetting the decline in sequential qtr/qtr growth. That aside, I totally disagree with your conclusion that SFAM will "repeatedly dip into the stock markets to finance its growth". That cushion of $170 million in cash as of November 30th via an equity offering when the stock was at significantly higher prices should allow this company to weather the storms of the next few quarters _without_ diluting the current holders equity with additional offerings. I am much more concerned with companies that did not take advantage of the run up in their stock price over the summer to liquify their balance sheet. BTW, that $170 million works out to about $10 and change in the share price for those who are not following this company that closely. ---- Dave