This is one possibility, re Puts.
Anyone have a technical reading on these stocks right now?
LEH on NVLS (latest one I have a copy of).
Headline: Novellus Sys: Notes from SEMInvest Presentation
Author: Edward C. White, Jr., CFA 1(212)526-4744/Tolomy Erpf
Rating: 3
Company: NVLS
Country: COM CUS
Industry: SEMICO
Ticker : NVLS Rank(Prev): 3-Neutral Rank(Curr): 3-Neutral
Price : $43 3/4 52wk Range: $66-24 Price Target: $35
Today's Date : 02/23/98
Fiscal Year : DEC
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EPS 1997 1998 1999 2000
QTR. Actual Prev. Curr. Prev. Curr. Prev. Curr.
1st: 0.46A 0.61E 0.61E 0.66E 0.66E - -E - -E
2nd: 0.50J 0.56E 0.56E 0.73E 0.73E - -E - -E
3rd: 0.57A 0.60E 0.60E 0.84E 0.84E - -E - -E
4th: 0.64A 0.68E 0.68E 0.97E 0.97E - -E - -E
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Year:$ 2.17A $ 2.45E $ 2.45E $ 3.20E $ 3.20E $ - -E $ - -E
Street Est.: $ 2.80E $ 2.42E $ 3.58E $ 3.15E $ - -E $ - -E
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Price (As of 2/20): $43 3/4 Revenue (1998): 631.0 Mil.
Return On Equity (98): 24.5 % Proj. 5yr EPS Grth: 25.0 %
Shares Outstanding: 35.0 Mil. Dividend Yield: N/A
Mkt Capitalization: 1.53 Bil. P/E 1998; 1999 : 17.9 X; 13.7 X
Current Book Value: $8.60 /sh Convertible: None
Debt-to-Capital: 17.8 % Disclosure(s): C
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* Management from Novellus Systems presented to investors at Friday's
industry-sponsored conference SEMInvest. Management emphasized the company's opportunities in Damascene copper processing (for 0.18 micron work).
* The company's Damascene business strategy includes a possible partnership with either Lam Research (LRCX-28 7/16, 3) or TEL (8035JP-4480 Yen, not rated) in etching and either SpeedFam (SFAM-26 11/16, 1) or IPEC (IPEC-16 1/2, not rated) in CMP.
* Management is comfortable with street estimates of $658 million in revenues for 1998 and believes that it will meet, or exceed, net income estimates of $80.6 million.
* The company began shipping 300mm CVD systems this month and the Innova PVD system will likely ship by 3Q. Longer term, the transition to 300mm offers the potential to combine the CVD and PVD machines onto one platform.
* The transition in the PVD business has exceeded the company's expectations but, we think its profitability remains low. Due to near-term industry uncertainties, we remain neutral on the shares.
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BUSINESS DESCRIPTION: Founded in 1984, Novellus is a rapidly growing
semiconductor production equipment company. Currently manufactures CVD and Tungsten CVD equip. and plans to introduce an integrated cluster tool.
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Disclosure Legend: A-Lehman Brothers Inc. managed or co-managed within the past three years a public offering of securities for this company. B-An employee of Lehman Brothers Inc. is a director of this company. C-Lehman Brothers Inc. makes a market in the securities of this company. G-The Lehman Brothers analyst who covers this company also has position in its securities.]
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