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Technology Stocks : Cymer (CYMI)

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To: PAL who wrote (8270)11/5/1997 12:24:00 PM
From: Maxwell  Read Replies (7) of 25960
 
Stock Buy Back Program??

This is a very bad idea for CYMI. CYMI needs all the cash it can to grow 40%+ annually for the next few years. CYMI is a small company and is on the low end of the S-curve and is growing exponential. If they exhaust their cash they can't meet the unexpected demand (if there is one). Furthermore CYMI needs to beefen up and perfected their service sector since it will outpace their manufacturing growth by late 1998. Cash is also needed to perfect the 198nm ArF laser and beyond. Cash buy back only occurs if CYMI thinks that it can't grow anymore and that is not the case here. Why kill your future trying to outmaneuver the manipulators. They are sure to have more cash than CYMI.

Maxwell
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