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couple of more points on down side and this would be a great buy as euqipmentmakers are not yet.
CYMER INC. (CYMI) 25 15/16 -4 1/16. The troubles continue for this semiconductor equipment maker as six months after Morgan Stanley
upgraded the stock from an "outperform" to a "strong buy," the firm has reversed course and has cut its rating to a "neutral." Meanwhile, in
about one month, the value of this excimer laser maker has been cut almost in half after trading at a high of $48 1/2 in late August, on a split
adjusted basis. The news that Morgan Stanley, a major bull on Cymer had withdrawn support for the stock has hit the issue hard today, although
Cymer had been losing steam for the past several weeks on concerns that it was having problems with its lasers and that it was leading to
contract cancellations. While Cymer has always denied that it had a problem with its lasers, along with investors, Wall Street has started to back
away from the issue with Montgomery Securities downgrading the stock to a "hold" from a "buy" earlier this week. Along with the ratings cut,
Morgan has also lowers 1997 and 1998 EPS estimate to $0.76 and $1.00 a share, respectively from its previous forecast of $0.84 and $1.15 a
share as it expects the company to ship less laser units than previously. In keeping with earnings reduction, the firm also cut its price target to
$30 from $46, meaning that this issue has little upside target given that Cymer was trading at $30 when Morgan lowered its view on the stock.
Given the price erosion and revised estimates, the stock's multiple has been cut from 58 times earnings to 34 based on Morgan's 1998 earnings
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