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Microcap & Penny Stocks : All American Semiconductor (semi) -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (639)	4/17/1998 1:07:00 AM
From: Harold Feller	Read Replies (1) \| Respond to of 952

Hello Arthur: What about this post? From the Yahoo SEMI message board. New line and earnings H_Humdrum Apr 15 1998 9:23AM EDT I've been talking about new lines and buyouts as the rational for holding this stock for months -- Looks like the new line is here. Rumored to be Fairchild Semiconductor. Fairchild Semiconductor is last year's spinoff from National Semiconductor. The company does about $1billion in sales, with $500 Million going through distribution. SEMI could expect to do about $10 million first year, $30-50 Million second year. Unless--- it is Fairchild's intent to fire an existing distributor after appointing SEMI(Pioneer would be the best candidate for firing), Then there would be as much as $100 Million that Fairchild would have to find a home for. Starts to sound pretty good for SEMI, huh? Earnings: Looks like SEMI has established earnings of about $.24/share going forward (probably with an upward slope of 5%). However, the company is operating at a maximum leverage point (SEMI could add approximately $100 Mil in sales without adding much in facility or staff) so that as much as $.30 of every INCREMENTAL gross profit dollar falls to the bottom line. Now figure $100 Mil sales from Fairchild at 20% Gross Profit -- That's $6Mil to the bottom line or $.30/share. Add that to the existing $.24/share=$.52/share!!! 12 times earnings gives you $6.20 share price. Maybe Tokyo Joe has this figured too. SEMI: Quote \| Profile \| Research This Is a Reply to: Msg 1 by YahooFinance View Replies to this Message