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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: James M. Belin who wrote (34652)	10/27/1998 11:26:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

Jim, Sorry, I know neither. MB

To: James M. Belin who wrote (34652)	10/28/1998 11:52:00 AM
From: eabDad	Respond to of 132070

James: Not sure I would agree with the statement that both CFMT and LWIN are trading at sharp discounts to book. CFMT is trading at 0.9x book and 1.6x sales, with LWIN trading at 1.6x book and the sales ratio is not applicable since they have not had significant revenues yet. CFMT is in the chip equipment area, and historical low points for an average stock in this area is 0.5-0.6x book, and 0.7-0.8x sales. This means there is probably some 30-40% risk in the stock with the fundamentals of the industry in the dog house. They are probably trading at a premium because they do have some neat technology, and are a possible takeover candidate. But I would not play them yet. If your time horizon is 4 years, they are fairly valued today. LWIN is a wireless telecom startup, basically. No revenues but they are in the CDMA realm, which is the future major technology standard (at least for the US). They appear to have an international expansion strategy, and their markets will take some time to develop. If it were me making the investment decision, I would wait 6-9 months to see if they can begin executing correctly on their strategy. I tend to like spinoffs since the management can focus on a growth strategy rather than being small part of a bigger name, but this one is a little risky for my blood. Good luck! Z