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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (16601)	10/1/1998 11:06:00 AM
From: Zeev Hed	Respond to of 18056

MMV, I actually lowered this target to about $75 and extended the time horizons due to the extended semi depression and the delays in the 300 mm program. If you followed the WFR thread, you would see that I am still waiting to actually see a bottom, and even 3 might not be the right place to buy yet. The book value which right now is at $12, could drop to $6 or so if the semi problems persists. One of these days, the semi segment is going to recover and WFR will have sales (if they survive this depression, which i think they will) in excess of of a $ billion annually (actually, I think they should peak within five years at annual sales above $1.3 Billions annually, from a current sales rate of about $700 to $800 MM), thus the price of $75/share will be less than 3 time sales, which in a "roaring bull" phase of this market occurs quite often. The main question is whether Veba will continue and support them through this period of bad times and the extent that they can keep improving their quality and sell higher margin epi and then 300 mm wafers. They have kept up with their investment in the 300 mm program thus, and so far Veba is still supporting them, one should believe they will survive. Zeev