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Technology Stocks : Nam Tai Elec. (NTAI) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Li who wrote (1252)	3/16/1998 6:29:00 PM
From: j rector	Read Replies (1) \| Respond to of 1696

there are alot of companys with strong cash positions--e.g. GM, Chris Craft,MSFT and obviously you should remove the cash before valuing. I like the cash position, but I don't like: 1) the absence of a CFO critical for purchases 2) the flat sales 3) the potential for huge insider liquidations in the next 3 months. 4) the stock manipulation and management indecision for the past year. Why werent' individual investors allowed to joing the CC? Why arent individual investors allowed to see Koo? One other question--why not keep some of the cash in overseas accounts where it can generate more interest income?

To: Bill Li who wrote (1252)	3/16/1998 7:49:00 PM
From: mod	Respond to of 1696

<<1. NTAIF has a cash of $9.13 per share, at $16, you pay only $ 6.87 per share (16-9.13). Take off the one time gain, the stock still has a EPS of $ 2.00 for 1997, which gives us a trailing PE 0f 3.43.>> Bill, You can't subtract the cash and leave in the earnings on the cash. If you annualize this quarters earnings net of gains and interest, you get about $1.28 for the year. It is still cheap on that basis, the problem is, what are they going to do with the cash? Why did they raise it? Based on what they said today, it could easily be a year from when they raised it before they invest any of the cash. If they could show some deployment of the cash, other then buying back their own stock, it would help the company, IMHO. Until then, it's like parking your money in a money market fund, if a sizable portion of their earnings are from interest, and the underlying company is not growing. Dennis