Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (4297)	9/2/1998 9:46:00 PM
From: Mitchell	Respond to of 6565

Better to Calculate Cash equivilents net of current debt,( I discount inventory in this case by 20m), gives you current cash equivilents of about 350m. That's $7.45 per share Don't you think that Long term debt in this case can be eaisily covered by a fire sale of hard long term assets, such buildings etcetera, which are not worthless ? I do. Mitch

To: Ron McKinnon who wrote (4297)	9/2/1998 10:21:00 PM
From: BWAC	Respond to of 6565

Ron, About the book value, there seems to be a question regarding the building and equipment. I agree that these are not worth what they seem in a liquidation sale, etc. Some things I found out from Sunil Mehta earlier this week regarding the value of these assets: He estimated the "market value" of the buildings, land, etc. would add about $1 per share to book over what these assets are actually recorded at. For instance depreciation has lowered their value on the books, while the property has actually appreciated in value. The equipment is depreciated over a 5 year period. It has a 7 year useful life and something about it all being modular now for upgrades. On average he estimated that 2 1/2 years depreciation had been taken against the current equipment. So its value may be higher as well. I have my doubts about this part though.