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To: Steve Reinhardt who wrote (2193)	12/11/1998 7:00:00 PM
From: view	Respond to of 3493

If your assumption is correct, then it should be trading between 8 to 10 dollars on a forward looking PE of 15. If they really get their act together and hint of continous growth in rev and bottom line they will get a PE of 20 or $12/share. It usually takes a company 2 to 3 quarters to win back the confidence of the market. In their last conference call, there was only one analyst and he only had one question in regards to selling the UMC fab stake. My guess is they will be profitable this quarter, but margins will be in mid 30's, but Q1 and specially Q2 will be weaker, therefore they can not show the sustainability. At 2 to 3 dollars I said it was a screaming buy, and even at these levels may be attractive for a short term trading, but in no means I will be a long term investor in a small company that is fighting very hard to keep a 35% gross margin business.