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

To: Tom O'Brien who wrote (2724)	2/9/1998 11:22:00 PM
From: Steve Patterson	Read Replies (1) \| Respond to of 3736

Clearly it will take quite a while for SFAM to use their cash, even if they never sell another Auriga from today going forward. I'm just observing that stocks are valued on perception of future prospects, and SFAM has already told us what a $40M+ chunk of that cash is going to be spent on. Given that a building and fab equipment cannot be sold for what they will pay for it, SFAM's book value will not be $17/share at the end of this calendar year. Since I hold a long position, obviously I believe that the end result of this spending will be more product sold. Check out the following snip. What is SFAM's relationship with Taiwanese semi manufacturers? Buoyed by a stable economy and foreign reserves of more than $80 billion, Taiwan has experienced only a minor decline in its currency and stock market since the turmoil began last summer and its IC and PC makers continue to be financially sound. Most of its IC makers plan to expand their wafer-fab capacities this year, a time when their rivals in South Korea, Japan, and Thailand are scaling back. As a result, Taiwan's IC industry is expected to grow by 20.5%, to $8.2 billion from $6.8 billion last year, predicted the Industrial Technology Research Institute. (from seminews.com )