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Technology Stocks : Cymer (CYMI)

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To: TideGlider who wrote (7188)10/29/1997 4:13:00 PM
From: Doc Savage  Read Replies (2) of 25960
 
Why shouldn't I dump my CYMI?

This years earnings are projected to be $.81 and next years $1.03. Based upon that, if CYMI stayed at $25, the PE after next year would still ~25. Based upon the growth situation at that time, this may still be high. Most analysts have recently downgraded CYMI and have it at a "hold". Doesn't look good!

However, the forward looking statements made by Cymer could be interpreted as an indication that the current forcasts are too low. In this case, analysts should soon be upgrading their forcasts which thrust Cymer back into the "sustained explosive growth category". And companies in this category often have PE's over 100 which means that CYMI could rocket soon.

I guess it comes down to the interpretation of the conference call and whether of not Cymer has credability with these statements.
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