Cymer (CYMI) Message Board

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Technology Stocks : Cymer (CYMI)

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To: MtnMan who wrote (18223)	6/23/1998 12:34:00 AM
From: Curlton Latts	Read Replies (2) of 25960

I do mean Cymer. If the Company got an all cash takeover offer right now at a typical 50% premium, all of the cash sitting on their balance sheet can be used by the acquirer to pay for the purchase. The net purchase cost of the Company would be ridiculously low based upon a discounted 10 year projected earnings stream. The Board would have to explain to shareholders why management sat around with all that cash earning a measly 4% while the stock was sitting at a big discount and thus put at risk to be bought at a net steal despite a previously announced share buyback program. Angus threw out that the multiple on 1999 earnings compared to an industry peer group was some kind of relevant measure but that view is flawed. The investment bankers little black books look at least a five to ten year projected earnings model to determine fair value and so do acquiring company managements. It would look pretty silly if they weren't buying some stock at these levels. There's $48 million of reserve available. Don't let Wall Street manipulate your stock Mr. Akins - fight back where it pays - the pocketbook. Good Luck To Each And All Curly ~~~~~~~~^^ [6.6] .....> [_

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