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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (3938)	1/28/2000 8:49:00 PM
From: Jong Hyun Yoo	Read Replies (6) \| Respond to of 5867

So how are you guys weathering this correction? I am actually looking add additional shares sometime next week. I have a feeling that year 2000 will be a banner year for the semiconductor equipment companies. I firmly believe that we have substantial additional upside room for both EPS growth predicted by the analysts and the stock target price. think about this: 1) LRCX manufacturing group is now working on utilizing same current space to double the output. The company is poised to be $2 billion dollar company by the fiscal yr 2001. Talk about improving the manufacturing efficiency. 2) During this fiscal yr, LRCX will top the historical peak revenue of 1.2 billion on the etch product alone. Yet, the employee headcount will remain about the half the size of previous peak cycle of yr 1995 ( 6000 vs. 3000). Essentially LRCX will hit the revenue number that is double the amount of the previous peak with head counts roughly reduced in half. Considering LRCX was doing EPS of $4.2 and there are still room for the gross margin improvement and operational efficiency, I am expecting LRCX to do EPS of roughly $6 ~ 7 at the peak of this cycle. Assuming PE of 32, I am looking for a share price of $220 dollars. If the growth accelerates, higher multiple is possible making upside potential to nearly double of current price. 3) I am expecting robust growth in the booking number towards the end of this calendar year. I think at that time, the purchase pattern will both include capacity buys to pump out more chips at 0.18 um and technology buys for copper, low-k, and copper initial shipment of 300 mm systems. 4) July also will be an exciting time for us as Semicon West will take place in San Francisco. Given the good outlook of the industry, I think semi-equipment stocks can do very well this time around. 5)With above things in mind, we should use any weakness to add more to your holding.. Good luck everyone.