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Subject:  Re: RM Ranker TXN Q1 2000 Date:  5/19/2000  11:54 AM
Author:  sditto Number:  6264 of 8329


I'm having trouble with the Net Cash part of the TXN analysis. The current definition for Net Cash monopoly status as defined in the RM Ranker (i.e., 5x=0, 2x=2) does not work well when the competitor average Net Cash is negative as is the case with TXN.

Although one competitor (MOT) has significant negative Net Cash which pulls the competitor average way down, another competitor (ADI) has a better relative cash position than TXN when you consider it is 1/4 the size and has a far higher Cash-to-Debt ratio.

In this scenario, TXN Net Cash looks OK but it does not appear to rate a 4 in monoploy status. Any thoughts on Net Cash in general and TXN specifically?

BTW, thanks for the great summarization of the DSP market.

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