from Briefing.com:
CYMER INC (CYMI) 28 1/16 +1 21/32. Shares of this semiconductor equipement maker got off to a very good start,
touching $30 a share before fading back to the currnent +6% level. Unfortunately, for CYMI shares, good news just happened
to come on the wrong day. Although the company reported 3rd qtr net that came in 2 cents, or 9.5%, above Wall Street
views, the stock was unable to sustain its early move. And, even after the company boldly predicted that it expects to
experience sequential growth in every quarter for at least the next two years, CYMI shares are finding it difficult to
breakout. The disappointing move can be largely attributed to overall weakness in the semiconductor group this morning.
Following a downgrade of the sector by UBS Securties, on fears that the poor economic climate in the Far East could put a
muzzle on the sector's growth, chip equipment stocks have taken a tumble. Names such as Applied Materials (AMAT 33 1/2 -3
1/2), Lam Research (LRCX 36 -3), CFM Tech (CFMT 26 5/8 -2) and Novellus (NVLS 47 7/8 -3 1/2) were mentioned
specifically. However, the firm's cautionary view on the sector has put the shares of most chip equipment stocks on a downward
course, which is reflected in a semiconductor index that is trading almost 5% lower. So, despite the company reporting
year-over-year EPS growth of 130% (not to mention the stock's relative cheapness) CYMI shares have been unable to make
their move today. But, for those willing to make the bet that valuation will be more important than the current sector trend, you
may want to do a little DD on Cymer. |
