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Technology Stocks : Speedfam [SFAM] Lovers Unite ! -- Ignore unavailable to you. Want to Upgrade?

To: Lex Luther who wrote (3387)	5/8/1999 10:06:00 PM
From: Mr. Sam	Read Replies (2) \| Respond to of 3736

Unconfirmed post on AOL: Subject: ISSUE SUB NOTES Date: 5/8/99 8:21 PM Central Daylight Time From: Kuduka Message-id: <19990508212106.12841.00000988@ng-cm1.aol.com> Filed on 5/6/99 to issue million sub notes.Refer earthlink.com news for SFAM.This may caused the wave.

To: Lex Luther who wrote (3387)	5/8/1999 10:38:00 PM
From: Mr. Sam	Read Replies (2) \| Respond to of 3736

Lex, thanks for posting equipengin's theory about what is going on. He claims to be from the right geographic area to have picked up some inside information. A lot of the facts are specific enough to wonder if he is indeed sharing inside information (illegally?). These purported "facts" include the timing (2 wks ago), the nationality of the potential acquirer (Japanese), the source of the leaks (US investment bank or potential white knight), Hill's location Thursday and Friday (investment bank meeting), the offer from the Japanese company (P/S=1; $30). Though he sounds convincing in some ways, in considering whether he is telling the truth or not, consider the following: 1. << It would cost TEL 1 times sales to by an established CMP co....>><<Word on the street is that SFAM could fetch as much as $30 a share from the Japanese and that would still be a great deal for them cause they get $5 a share refund because of all the excess cash that SFAM currently has on it's balance sheet. >> These statements are in conflict with one another. As I calculate it, their P/S is about 2 now. At $30 per share, P/S would be about 4. (I should double-check my revenue number to make sure I accounted for the pro-forma results correctly, but I think that I confirmed my numbers at some point since the merger was finalized.) 2. He claims to know a lot of the story. Consider the likelihood of leaks about the offer, the response, Hill's schedule, and the valuation. The investment banker, Mr. Hill, and some SFAM execs would know most of those details, so such a leak might have happened, but it could also be fabricated. As I posted earlier, I do believe that the most likely reason for the run-up is takeover rumors. And they could easily be absolutely true. Just be careful in evaluating information that gets posted in times like these when there is a lot of uncertainty about the reason for the move.