Hi Tina:
I have been in DPMI since the IPO, although I have bought and sold small blocks here and there as a trade. Like all stocks, I don't have a clue where the price is going short term. I do, however, have a pretty good feel for the company and where it is going long term. It essentially has positioned itself to be the dominant supplier of masks for the .25 and below geometries that are just now coming into production. The Asian mess certainly has had an impact on its performance, and likely will continue to adversely impact results for a while. Given that the industry's move to .25 and below is accelerating, however, and that moving to those geometries is a matter of survival for the companies involved, I see the long term prospects for the company as excellent. I have heard rumors that internal forecasts of price p/s range as high as $250 - $350 in a 3 to 5 year window. Given that it already has seen $70, I find that scenario to be mathmatically plausible.
A retrospective low P/E analysis suggests that a worst case scenario for this company presently is $23.00 p/s. At a quote of $26, even assuming that it might be "dead money" for a quarter or two, the risk/ reward ratio seems absolutely compelling.
Regards,
John
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