Replies to post #283361 on Zeev's Turnips Patch-No Politics (ZEEV)

[gtober]

i am working from memory, and apparently, too lazy to actually call up a yahoo balance sheet. my concern doesn't center on goodwill per se. i was more concerned about a book value valuation metric comparing an intellectual property shop with a manufacturing shop.

i don't dispute SSTI is dirt cheap. i don't know if another shoe is to drop, however. its a great company, but subject to a lot of external factors when they don't internally control the manufacturing process. don't they use TSM to manufacture? if so, there could be a china/taiwan instability play as well.

[hawk]

Zeev

Are you contemplating revising your road map, again, or just abandoning it at this point ?

[langostino]

not true zeev

over what representative full cycle do you show cash flow suggesting SSTI grows its book value by "pretty close to $1/share yearly"?

It's a classic error to take peak earnings or cash flow in a highly and deeply cyclical manufacturing business and then extrapolate.

Net/net through full cycle these guys are producing negligible net cash. That $263 mm in cash and ST investments that you point out is, ironically, almost exactly equal to the $258 mm secondary they issued a four years ago.