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Technology Stocks : Mattson Technology -- Ignore unavailable to you. Want to Upgrade?

To: Philip W. Dunton, Jr who wrote (2971)	8/3/2000 8:58:16 PM
From: The Ox	Read Replies (2) \| Respond to of 3661

Here's my take: Unless STEAG Electronic Systems' optical + photomask divisions are an albatross, the market doesn't understand the implications of this 3 way combination. Excluding the STEAG segment and looking at a combined CFMT+MTSN, the market currently has a price to sales ratio for the combined 2 units of 1.76 (MTSN sls last 12 months=157.7, CFMT sls=43.5, combined market cap 355.19, combined sales=201.2) This is DIRT CHEAP and makes MTSN extremely attractive, IMO, so much so that I added shares today at $15. If the market see fit to reduce the price of MTSN share even further, I'll consider adding more shares. The original press release stated that the combined companies would have had sales of $282 mil for 1999. Using MTSN's sales for 1999 of $103 mil and CFMT's sales of $38 Mil(Jan99-jan00) we must assume that STEAG's sales for their divisions were about equal to those of a combined MTSN/CFMT. MTSN will issue roughly 16 million shares to merge with these companies and I believe there are currently 19.7 million shares issued. So the new entity will have roughly 36 million shares issued at the time of the merger. Can we assume that since CFMT and MTSN have shown increases in revenues since 1999 that the same can be said for STEAG's division? Any way you slice it, the market is discounting this new entity or doesn't believe it will be able to be profitable. Add to this equation that the initial 20% drop this morning was on less then 50K shares and it was just too much to pass up, at least for me! Anyone see it differently? Corrections or opposing viewpoints welcome! The above just my opinion. Michael