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 : CYPRESS Semiconductor (CY) -- Ignore unavailable to you. Want to Upgrade?

To: jelrod3 who wrote (2063)	11/16/1998 12:33:00 PM
From: Mike Mansour	Respond to of 2694

Should be a good deal. See article below. Anyone have a summary of the conference call held last week?? ----------------------------------------------------------------------------------------------------- A service of Semiconductor Business News, CMP Media Inc. Story posted 6:30 a.m. EDT/3:30 a.m. PDT, 11/13/98 Cypress prepares to hit the acquisition trail By Will Wade SAN JOSE--Cypress Semiconductor Corp. here announced it has filed notice with the Securities and Exchange Commission of its intent to raise $300 million through the sale of securities. Company president and CEO T.J. Rodgers predicted that the SRAM recession that has plagued Cypress's revenues throughout the year is coming to an end, and he wants to position the company to capitalize on the expected growth phase. Although Emmanuel Hernandez, vice president of finance and chief financial officer, said there are no deals currently on the table, he made it clear what the funds are intended for. "This is part of our ongoing effort to grow the company through acquisition," he said during a meeting with financial analysts. Although SRAM sales account for more than 40% of the company's revenues and are the largest single product area, Rodgers said that its data communication products are among the fastest growing and firms in that market would make an attractive acquisition target. "Any company in the data com market we'd buy in a minute," he said. However, he pointed out the Cypress is not the only company aware of that market's high potential, which has driven up prices in the past for data com firms that have been put on the block. "Or, we'd look at anything else that enhances our non-SRAM divisions," Rodgers added. Cypress is currently implementing a stock buyback plan, and its board authorized in September the purchase of up to 14 million of the company's shares as the stock price plummeted to below $6. Since then the shares have recovered to nearly double that price. "This [filing] announcement doesn't mean we are going to turn around and sell back the shares we just bought," Rodgers pointed out. Instead, the company could raise the funds through a combination of selling off equity, debt and convertible debt. Cypress currently has cash reserves of some $270 million.

To: jelrod3 who wrote (2063)	11/16/1998 12:38:00 PM
From: larry pollock	Read Replies (1) \| Respond to of 2694

If you examine the recent balance sheet, there is also $175 million of long-term debt on the books as well. If the shelf offering is fully utilized as long-term debt, then we have $475 millions of debt. The stock is undervalued? Based upon the current stock price, it appears that the investment world is not convinced.

To: jelrod3 who wrote (2063)	11/17/1998 12:45:00 PM
From: cbstock	Read Replies (1) \| Respond to of 2694

This is not unusual if you have followed CY a long time, TJ trades CY stock and even has written a paper an his approach, available at the CY web site. When the stock gets up to a more reasonable value like $25 or $30. It may be a year or two, but the filing lets the company move forward quickly at that time. CY currently has about $300M in cash and will spend about $100M in Capital next year. I expect CY to move up $4-$5 in the next few months. Many people follow this stock and it is a good trading stock because of the volume.. Regards cb