Maybe better PR would have helped earlier, but too many other factors are in play now. Cymer is up against the wall here, yes it has had great growth, a bottleneck product in a high growth sector, but it has a limited sales history and only a handful of customers. It is a few of those customers that concern me. From what I have read, Japan is holding $500 billion in non-performing debt, the big bang event is coming in March and by all accounts the Japanese banks can not meet the new requirements for reserves and assets. Even these new standards would not be acceptable in the US and a number of these banks will be under additional pressure from the $70 billion short term debt held by them that Korea is in immanent danger of default. I don't think anyone can really predict the effect on economic growth in Asian area and its effect on the world economy, and this is showing in the volatility of the tech sector. Cymer's customer base has a large exposure in Asia, and her fortunes are closely tied. It has taken me some time to see these effects on Cymer and related type stocks, so I am holding more CYMI than would be my wish. If the outlook for Asia improves so will the market treat CYMI. Much more has been said in articles and pieces, but here I just wanted to state briefly my concerns. IMHO.
Ed |
