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Technology Stocks : Cymer (CYMI)

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To: Robert DeHaven who wrote (13252)1/28/1998 1:23:00 PM
From: Yakov Lurye  Read Replies (1) of 25960
 
For CYMI trading after earnings, I expect muted reaction initially, with cautiously positive remarks from analysts next week providing some upwards momentum - similar to SVGI.

It's a shame though that a nice SOX rally is being wasted because of pre-earnings jitters. In my worst case short-term scenario, SOX will peak tomorrow before the 4Q results will be released, and then we might get caught in a broad market selloff.

I am toying with an idea of selling some stock and using the proceeds to buy Aug. 12.5 calls. The equilibrium point for this trade is CYMI @18.75 by August.

Y.



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