Hang in there Steve: Individual Investor has an update on Cymer:
BRIGHT LIGHTS
Cymer (Nasdaq: CYMI) fell from grace in September. Soon after we featured the maker of high-tech lasers used to make conductors "Blazing Wafers," August), shares jumped to a split adjusted $ 48.75, nearly double the recommended price. Then management canceled a presentation at a technology conference sponsored by the New York brokerage Needham & Co and the rumor mill started grinding. Among other things, investors heard of a fire at one of Cymer's plants, and by the end of September shares had tanked 43% to $ 27.88.
Most of the rumors turned out to be fiction, but investors have kept pressure on shares. Analyst Jay Deahna of Morgan Stanley, Dean Witter, Discover & Co. downgraded the stock, citing weak demand for lasres, as well as problems at Cqanon and Nikon, two Cymer sutomers. Deahna cut his earnings estim,ate for 1997 from $ 0.84 a share to $ 0.76, and for 1998 from $ 1.15 to $ 1.00.
It seems shares have bottomed. Although Cymert faces competition, it still dominates the market for its narrow-beam lasers, which enable manufacturers to etch more transistor onto chip than with traditional lasers, increasing processing speed. Chipmakers' reliance on Cymer justifies the p/e of 30 to 1998 estimates, according to Robert Maire, an analyst at Donaldson, Lufkin & Jenrette, who began recommending the stock in early October. Maire has a price target of $ 33, and is thinking of raising it. "This is very volatile market, and you make your money by investing in overcorrections," he says.
by Stephen Gandel
______
Boldface is mine. We may have an ally in Robert Maire.
Good Luck.
PAL |
