Spansion: Trouble on the Balance Sheet [View article]
Spansion has potentially hit bottom in regards to overall cashflow due to the afore mentioned new plant builit in Japan. And as the author mentioned they have consistently been cash flow positive operationally throughout this downturn. The new plant along with less pricing pressure in the market due to the consolidation of Intel's NOR business with another competitor will lead to the higher margins. Besides at these prices this stock is a perfect speculative play due to the fact that they have already provided a roadmap to undercut the entire DRAM industry on price and performance. This is a market they are not currently in and it is many times larger than either the NAND or NOR markets they currently compete in. They have vast upside potential.
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Spansion has potentially hit bottom in regards to overall cashflow due to the afore mentioned new plant builit in Japan. And as the author mentioned they have consistently been cash flow positive operationally throughout this downturn. The new plant along with less pricing pressure in the market due to the consolidation of Intel's NOR business with another competitor will lead to the higher margins.
Jul 31 13:40 pm
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All Comments by Jobu37 »Spansion: Trouble on the Balance Sheet [View article]
Besides at these prices this stock is a perfect speculative play due to the fact that they have already provided a roadmap to undercut the entire DRAM industry on price and performance. This is a market they are not currently in and it is many times larger than either the NAND or NOR markets they currently compete in. They have vast upside potential.