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Technology Stocks : Cymer (CYMI)

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To: Scott Violette who wrote (13957)2/2/1998 11:15:00 PM
From: Paul Dubsky  Read Replies (1) of 25960
 
I'm a recent newcomer to this thread and wonder what *someone's* opinion is on CYMIs debt to equity ratio of 1.47:1. I normally don't do stocks with D:Es greater than .50, but there seems to be so much optimism that CYMIs the next INTC that I wondered why? It appears that the "debt" is he 150+MM in convertible notes. With such a strong balance sheet and growing industry, why wouldn't they just go ahead and issue new shares? I'm no expert in convertibles other than knowing that they dilute if converted.

Can someone tell me why this doesn't cause a problem long term for CYMI. I'm looking to invest $10K in "the next INTC" and want to make as wise a decision as possible. Does anyone have a price target in 5 - 10 years, assuming that they execute their business model?

Thanks,

(I'm also considerind Radisys, as they seem to be a very explosive company, and tied to INTC at the hip, as INTC owns 17% of the company.)
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