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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Mason Barge who wrote (6299)	7/16/1998 8:05:00 AM
From: Q.	Read Replies (2) \| Respond to of 10921

MB, re. <<One company that is really cash-strapped that might bear a look is IPEC. It has been one of my personal "most likely to fold">> IPEC now has lots of cash (see table below). Their $95 M cash represents over 2 quarters of revenue, and nearly 4 years of cash burn, so I doubt if it can run out of cash any time soon. They actually have a slightly better liquidity situation than LRCX. The worst cash liquidity of any semi equip I can think of belongs to AGAI, which has only $1 M in cash and had a negative cash flow in the Mar. quarter. This stock is trading well below book for good reason. SMTL is in better shape than AGAI, but still a lot riskier than most semi equips, as they have only $4 M of cash, which represents only about 9 days of revenue. They have been producing cash lately, although in 1996 they burned it, so the present sector downturn would seem to put them at a bit of risk of running out of cash. ============ IPEC's cash situation: 009 SELECTED BALANCE SHEET ITEMS (Thousands of U.S. Dollars) YEAR ENDING QUARTER ENDING 06/30/96 06/30/97 03/31/97 03/31/98 RESTATED ON 06/30/97 Cash & ST Investments 11,325 40,656 18,598 95,125