Ultratech Stepper Message Board

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Technology Stocks : Ultratech Stepper

UTEK 30.23

0.0%

Jun 5 5:00 PM EST

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To: Ian@SI who wrote (2324)	4/2/1998 9:44:00 AM
From: Justa Werkenstiff	Read Replies (3) of 3696

All: Another short shows his face. It is the infamous Bill Flekenstein. This guy had been spreading short stories about CYMI at least since last fall calling them a "light bulb" maker (they make DUV lasers for steppers with 80-90% market share) and trying to convince the market that CYMI was making a commodity product. I have seen many parallels between UTEK and CYMI technically the past few months and Fleckenstein's presence on the short side completes the circle for me. Check out: Message 3927273 There were many companies to short in the semi-epuipment sector since SEA broke but CYMI and UTEK have both attracted much more than their fair share than other small cap companies. I have believe that one of the reasons that UTEK and CYMI have attracted such a short following is because of newsletter writers who recommend these stocks. With respect to CYMI, Carlton Lutts of Prestek fame was pushing CYMI at every opportunity up until the stock hit the lower 20s late last year when he threw in the towel. CYMI was way overvalued at its post split peak of about 50. In its spectacular rise from its IPO of about $7.50 post split to $50, CYMI attracted a large unsophisticated shareholder base. If you don't believe me, go to the CYMI thread and check out the posts from mid September to the end of the year and witness one of the great long squeezes of the past year. You will see an incredible amount of pain being posted day after day as margin calls are realized and shareholders fight off short rumors on a daily basis. The stock tanked from about $50 to $14 and change. Now look at UTEK. Bob Brinker had liked this company for around a year before he started recommending it in his newsletter. Since Brinker's recommendation of UTEK in his newsletter in the low 20s, the stock ran to $34 and change and attracted a new shareholder base. I remember calling UTEK early last winter. IR apologized to me for not getting back to me sooner but told me that the reason for their delay was that they were being swamped by Bob Brinker followers who were wondering why their stock was going down in value. IR was not complaining. They just said it was requiring more effort on their part. So I think one of the attractions of shorting UTEK and CYMI was the perception by the shorts that they could shake out many of the unsophisticated investors who were buying something because someone said to do it. I have filed this in my lessons learned folder. I don't know if the Fleck has closed his position. I would watch him very closely. He is very good at spinning short stories and has ready access to the media. He even has his own column: stocksite.com Oh, read the last few paragraphs again in that post above. I don't buy his statement about not believing people are stupid. He counting on taking that stupidity to the bank.

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