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Technology Stocks : Cymer (CYMI)

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To: Mark20 who wrote (14209)	2/5/1998 3:09:00 PM
From: Curlton Latts	Read Replies (1) of 25960

Mark20: There are not enough shares available for the short to cover anywhere south of $75 per share! North of $75 Mr. Universe will still be gagging as he still will not have covered all of the position. When you go into a market without knowing anything about the fundamentals or technology and indiscriminately attempt to bully the market; then ignore the warning signals that tell you your wrong; you end up being taken out horizontally. That is what has happened to Mr. Master Of The Universe 4 Million Share Short Recklessly Regardless Of Price Man. The beginning of this mess for the stuck short interest began last year when the analysts continued to underestimate the earnings. There were 15 straight upward revisions to earnings estimates through July last year; then on top of that CYMI beat the second qtr earnings estimates by 50+%. That created a situation where there was approaching 1 million shares short that was way under water. Mr. Universe then wrongly decided to take an all or nothing approach by shorting 4 million shares starting in Sept. This all or nothing short activity has been accompanied by all manner of published "hit pieces" in the media and other wrong rumors. The short's hope was that they could shake out Joe Public and extricate the original 1 million shares. Unfortunately the entire strategy has just blown up in the short's face as there is now $50 million worth of buying to come into the market from the Company's stock buyback program. The end result now is that close to 7 million shares are to be purchased (3 million buyback and 4 million short) in a stock that has a total float of ~10 million shares! To answer your question - no - Mr. Universe has not even gotten close to covering and now is in the miserable position of having to put the market up on himself to try to survive. To top it off the companies underlying fundamentals are the best that can be found across the entire business landscape today. No competition; 90% market share; making money hand over fist; a top notch management team; and a Rock of Gibraltar balance sheet with $183 million of cash and liquid assets; and a long term projected earnings growth rate of 50%. Good Luck To Each And All Curly ~~~~~~~^^ [6.6] .....> [_] Good Luck To Each And All

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