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Technology Stocks : CFM Technologies Inc. (CFMT) -- Ignore unavailable to you. Want to Upgrade?

To: Yiqun Xie who wrote (595)	12/10/1999 10:46:00 PM
From: SemiBull	Read Replies (1) \| Respond to of 721

"But the litigation expense is continuously dragging down their bottom line from being profitable." Where are you getting this from? If you follow the equipment sector, you know that it a cycle issue. The expenses associated with their patent litigation are not prohibiting them from being profitable - at least from my recollection of their last 10Q. If it was such an expense, there are a whole host of quality firms that would represent them as plaintiffs in these matters on a contigency arrangement. "The management was and probably is still focusing on litigations." I beg to differ here too. Management is focussing on stopping its competitors from eating nibbling at their lunch. Litigation is the tool to keep CFMT in control of its marketshare. This will be EXTREMELY relevant when the cycle kicks in and the niche which CFM participates starts a growth spurt. "Execution is the key for its success. but investors are more cautious than they were before, which is manifested by its current stock performance and daily volume." CFMT's competitors in this sector have not run away either. "Investors" are historically reticent to invest in small cap equipment plays until the cycle is more in bloom. "My opinion is that they need to grow their revenue at a faster rate." Again, we are waiting for orders to flow in the subsector of their niche. As their competitors aren't getting orders, buy, sell or be patient. CFMT does not control it destiny....customers need to expand to place orders. CFMT will make money when fabs migrate to 300mm, and will generate cash from upgrades in older fabs. We are closer to the later, and CFMT will get its share of these when they come - my guess, sometime 2Q '00 - remembering that they are likely to get at the later stages of the cycle uptick, though this is not an absolute certainty. "CFMT stock can shoot upward only when they show the street a good top line growth rate." Sounds like a recipe for every stock. :~) Bottom line, CFM can't sell that for which customers aren't in the market for to a large degree. If you have invested in this sector before, you would know that it is boom to bust, feast to famine. Hmm....which are we transitioning from and into now? :~) Just one man's spin....SemiBull