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Technology Stocks : Ultratech Stepper
UTEK 30.230.0%Jun 5 5:00 PM EST
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To: Demosthenes who wrote (2273)3/26/1998 6:26:00 AM
From: Justa Werkenstiff  Read Replies (2) of 3696
 
Demosthenes: Your thinking makes good sense for the long term. But let's face reality. The SEA thing has thrown a monkey wrench into cap ex and nobody can get a handle on the effects of that event short term. A DD company who must be competitive to a fault to survive in that commodity business where GMs are historically around 20% (lower now) and where they are racking up losses quarter after quarter because of the supply/demand imbalance which may have do some short sighted things. In that type of environment, short term push outs of leading edge equipment like pole trimmimg may occur and UTEK said last time I talked to them that the back end of the TFH business where pole trimming is located was slowing and was following the lead of the front end business.

Nationsbank's Hodess, a die hard supporter of UTEK, must be seeing the writing on the wall. Yesterday after taking his CY 1999 estimates to $1.00 the previous day, he took his CY estimates for 1998 from $.75 to $.40 and his quarter ending March 1998 estimates from $.14 to $.05. Ouch. I like his approach. First he reiterates the good news with his long term growth projection of 40% and then he leaks out the bad news over the next few days <g>.

UTEK is for the patient investor. I have a core position in the stock but am trading it to take advantage of the shorts and to provide some return while I wait. Some have taken advantage of the stalemate situation by writing options against their position. Others are just content to take a seat on the porch and watch the grass grow and the shorts jump every now and then <g>.
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