Lam Research (LRCX, NASDAQ): To the Insiders Message Board

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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders

LRCX 237.51

+1.7%

3:59 PM EST

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To: Lord who wrote (1855)	2/26/1998 1:42:00 AM
From: Jong Hyun Yoo	Read Replies (1) of 5867

>The customer must remain loyal so as not to financially deprive one of their key vendors. Do you see this anomaly in logic changing? Lord, you are right. The customers definitely want to have multiple vendors for the equipment. However, I would not count on them being loyal to a particular vendor. The bottom line is that they want to maximize the profit and hence they want a tool that is technologically superior yet reliable. Unforntately for Lam, they fell behind AMAT in providing the cluster tool for the rigorous production environment even though they might have a superior etch process 2 years ago. This probably caused them to lose a significant amount of market share to AMAT. When Lam attempted to rectify the situation with Alliance cluster platform, it ran into the mechanical hardware reliability problems, which is typical of new products. When Lam finally resolves this issue, it ran into the environment of excess capacity and hence their effort to catch up and regain market share from AMAT is suffering. But on the bright side, Now Lam offers a tool that is both competitive in process technology and in production gear. And when there is any market upturn, Lam will benefit significantly. I firmly believe that in the long run, Lam will come out as a winner. In addition, in order to compete effectively with AMAT, Lam needs a deposition unit( I mean metal PVD). I expect a merge with Novellus in the future. In the meanwhile, I guess i will accumulate as much as I can at this bargain price.

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