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To: SJS who wrote (13775)	8/11/2000 10:32:25 PM
From: drsvelte	Read Replies (1) \| Respond to of 14427

How about CMOS? TOP PICKS CREDENCE SYSTEMS CORP. (CMOS: 57)* Investment Statement:(CMOS) We rate Credence Systems Top Pick with a 12-month target price of $106. We look for the stock to trade conservatively at a 30 times on our CY '01 EPS estimate. The main attraction is CMOS's low exposure to the slow-growing PC-centric market and its high exposure to the fast-growing communications/consumer segment. It also has a leading market share of the Asian subcontractors. CMOS has ample opportunity to gain market share in Flash, which sets the stage for faster growth than the overall tester industry. CMOS trades in line with the front-end equipment companies, which have a higher exposure to the PC market. As the market begins to understand Credence's more robust end markets, we believe it will trade at a multiple premium to the leading frontend equipment stocks. We have already seen this in semiconductors, where communications companies are trading at 40-50 times '01 earnings versus 20-30 times for the PC companies.