Jobu37

Spansion: Trouble on the Balance Sheet

It is my understanding that their mirrorbit technology is much more efficient than the floating gate technology that all of it's competitors use. And since their new plant will start producing chips at much smaller nanometers they appear set to increase margins beginning in the next quarter or so. The fact that IBM sees positive attributes in this company certainly implies that SPSN has a strong future. One would think that IBM knows more about the technical side of this company than any of us. RockJohny, you have a good theory on the eco-ram tie up with IBM. I was thinking that eco-ram was further down the road but if I recall correctly it was contingent on getting production down to 45 nanometers and it appears with the new plant in production that SPSN may be further along than even I had anticipated.

Spansion: Trouble on the Balance Sheet

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.