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

To: Math Junkie who wrote (2014)	3/7/1999 2:26:00 PM
From: Duker	Respond to of 3813

<<Comparing them to MU makes about as much sense as comparing them to K-Mart>> Richard, You too have heard about the K-Mart and Novellus merger rumors? --Duker

To: Math Junkie who wrote (2014)	3/7/1999 2:35:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 3813

>>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?<< richard, the 2ndary alone doesn't prove anything alone. however, i will offer that nvls has reported earnings many times greater than the $131 million in the cash/sti account. i'd also offer that nvls spends much more than that every year in order to just stay in business. it isn't that much money in this business. if you earn $500 million in reported eps but have to spend $1 billion in order to stay current and earn another $500 million - over and over - you will eventually lose that game. notice, reported eps are good but cash flow is negative. i think nvls has some very savvy management to raise money in a bubble market. actually, i think that is just a basic of management. unfortunately, those practicing basic management today seem incredibly savvy compared to their peers. i don't think nvls will squander the money. i think they probably need it to stay current - even after they have reported incredible earnings over the last many years. aka - cash flow problems.