October 25, 1999
Dow Jones Newswires
ATMI Inc. Dn 17%; Analysts Blame
Unfounded Rumors
By RICK JURGENS
PALO ALTO, Calif. -- ATMI Inc.'s (ATMI) stock closed down 16.5% in
heavy trading Monday, a sell-off analysts attributed to rumors about the health
of ATMI's business in coming quarters.
ATMI closed at 22 7/16, down 4 7/16, in Nasdaq volume of 2.1 million shares.
Average daily volume is 246,400 shares.
Daniel Sharkey, ATMI's chief financial officer, said he didn't know of any
business news that would account for the stock's price decline. "Our business is
strong," he said.
Analyst Glen Yeung of Deutsche Bank Alex. Brown blamed the decline on
selling by some large holders of stock in the Danbury, Conn., company, which
provides thin film materials, equipment and services to semiconductor makers.
About 713,300 shares moved in 45 block trades of 10,000 shares or more,
compared to 98,600 shares that move in blocks on an average day.
Yeung said the selling was "a reaction to rumors in the market about the health
of ATMI's business for the next couple of quarters."
Yeung said that he believes the rumors are unfounded. "We think the model (for
ATMI) is pretty healthy going forward," he said. While there had been some
weakness in ATMI's technology business, the company's materials business has
been good and should get better, he added.
Analyst Theodore O'Neill of Needham & Co. dismissed rumors about ATMI
as "a bunch of hogwash." ATMI's stock is a natural target for short-sellers since
many holders bought it when it was relatively expensive and since the company
provides only limited information about its results by business segment, he
noted.
Financial Chief Sharkey said he couldn't comment on rumors. "We'll let the
business speak for itself," he said.
-Rick Jurgens; 650-496-1367; richard.jurgens@dowjones.com
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