Align-Rite Int'l (MASK) Undervalued compared to PLAB DPMI Message Board

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Technology Stocks : Align-Rite Int'l (MASK) Undervalued compared to PLAB DPMI

PLAB 21.71

-4.3%

Nov 7 9:30 AM EST

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To: BillyG who wrote (117)	10/26/1997 10:37:00 PM
From: Bookdon	Read Replies (1) of 388

MASK has bought mostly used mask-making equipment, and the lowest cost CORE tools over the last several years. This focus on mid to low end mask making hits PLAB and DPMI where they focus the least effort. According to one ex-DPMI employee, DPMI has ben putting small (less than $5 million/year) customers on allocation recently (66% of requested volume). MASK can pick that business up at good margins. High end mask-making tools require a substantial "learning curve" investment, and don't become fully productive for 6 to 12 months after installation. COREs, on the other hand, "hit the ground running" and become productive within a few weeks. MASK has a sound strategy for good times. In bad times, as the low cost producer they have a potential advantage, but DPMI and PLAB can choose to sell below total costs, just to cover their fixed costs.

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