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

To: Skeeter Bug who wrote (2007)	3/7/1999 2:25:00 AM
From: Math Junkie	Read Replies (2) \| Respond to of 3813

<<yes, richard. you raise money when the market supports a price well above its value.>> I agree that the secondary offering indicates that Novellus' management thought their stock was richly valued. I just can't see how that proves that they don't have cash flow. What the heck was the 131 million dollars in cash and short-term investments on their balance sheet a couple of months ago? <<you apparently don't understand eps and cash flow. if you go back 4 years or so, mu's reported eps is well into the several dollar category, if not much more. they have no money and just increased debt by a cool $1.5 billion recently. the resaons for this are obvious to the clued in>> Perhaps you would condescend to explain to we poor unwashed just what the heck you're talking about, and what MU's earnings from four years ago have to do with Novellus. <<and they still, 1. need money (bad for investors), 2. can't pass up an opportunity to flog the ignorati (bad for investors).>> This is only bad for investors if you assume they are going to squander the money. Novellus has a reputation for being a well-run company, so I still see no justification for such an assumption. Comparing them to MU makes about as much sense as comparing them to K-Mart.

To: Skeeter Bug who wrote (2007)	3/7/1999 12:22:00 PM
From: Math Junkie	Read Replies (3) \| Respond to of 3813

<<you apparently don't understand eps and cash flow.>> Well, since yesterday I did a little research (you should try it sometime), and I have found the following: Cash flow is calculated by adding noncash charges such as depreciation to net income after taxes. Novellus has not had a losing quarter in at least five years. Perhaps you could explain to poor, dumb little me exactly how you can add charges back into a positive number and come up with anything other than a positive cash flow? According to Baseline Financial Services, as of March 3rd, Novellus had a price to cash flow of 29.1, with a closing price on that day of 57 7/8. Thus the cash flow per share was $1.99, for a total positive cash flow of close to 70 million dollars. Now, explain to me again how Novellus is a "non cash flow business"? Baseline also gives the five year range of price to cash flow as 4.9 - 38. Note that it never went to infinity or negative, as it would have to do in order for the company to have either zero or negative cash flow. Instead of shooting from the hip and making up stuff about a company, why not actually look it up? All this is readily available on the Internet, and if poor, dumb little me can find it, surely a great mind like yourself could manage it.