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Technology Stocks : Novellus -- Ignore unavailable to you. Want to Upgrade?

To: Math Junkie who wrote (1933)	2/25/1999 3:31:00 PM
From: Duker	Read Replies (2) \| Respond to of 3813

Details: Novellus To Offer 3.86M Shares At $67.50 Each SAN JOSE (Dow Jones)--Novellus Systems Inc.'s (NVLS) public offering of 3.9 million common shares was priced at $67.50 a share. The company has 34.2 million outstanding shares. In a press release Thursday, the maker of automated wafer fabrication systems said it expects net proceeds of about $255.3 million, excluding over-allotments, from the offering. Novellus will use the proceeds for general corporate purposes. Hambrecht & Quist, the underwriter, has a 30-day option to buy up to 579,000 more shares to cover over-allotments. Nasdaq-listed shares of Novellus recently traded at 67 1/4, down 5/16, or 0.5%, on volume of 3.3 million shares.

To: Math Junkie who wrote (1933)	2/25/1999 3:42:00 PM
From: Duker	Read Replies (1) \| Respond to of 3813

Classically: Issuing stock below book value is dilutive to existing shareholders. This is clearly not being issued below book value, so it is not dilutive to existing holders (obviously, the new holders get diluted ... someone loses, someone wins ... and the bankers always do well ...). Now, could Ricky Hill run out and make a dilutive acquisition (dilutive to earnings versus the more classic form of dilution mentioned above), yes ... of course. However, he would really have to overpay or buy something that is not producing any earnings now (e.g., LRCX or CFMT) ... because one would assume that he would use stock to transact such an acquisition ... which would make it very difficult to be earnings dilutive given the multiple applied (no pun) to NVLS stock ... so tough putt ... unless really overpays or buys a LRCX/CFMT-type company ... but, then there are always the synergies!!! Isn't it all so clear? Please, explain it to me. --Duker