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Technology Stocks : Cymer (CYMI)

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To: Curlton Latts who wrote (21702)4/15/1999 12:08:00 PM
From: Ken Zeller  Read Replies (1) of 25960
 
>>You're right .......... from these levels today.....it's about a 6 bagger in 12 months. Let's not forget....earnings estimates continue to ratchet up...up...up. Next year estimates right now are $1.34. I see that moving to $1.40 soooon.<<

Full Disclosure: I sold out for a tax loss in December at 18 and change (Yeah, I know my timing leaves a little to be desired). Not back in yet but continue to watch.

My E-trade data based on Zack's has this year at .11 and next at .99. Fiscal year is the calendar year so we are talking 20 months from now for the earnings to hopefully be in the bank. What's the appropriate multiple...25...50...100? 100 for the hottest momentum stocks, excluding internet stocks of course. 25 is at the upper end of realistic IMHO for CYMI.

Lets use optimistic numbers: 50 x $1.40 = $70 in 20 months. Not a bad return for those with patience and an ability to weather the vagaries of this sector and the inevitable inroads made by competitors and equipment makers looking for a cheaper way to do business.
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