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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (112106)	8/19/2000 6:38:49 PM
From: puborectalis	Read Replies (1) \| Respond to of 120523

ML report on ENTG...highlights=Valuation is a Gift...Given the capacity utilization is below 60% for ENTG,we estimate that the company can see more operating margin expansion over the next 1-2 yrs,providing upside EPS.This is impressive since the high value-added of ENTG's prdts gives the company operating margins up in the rarefied levels of AEIS,MKSI,KLAC and other industry leaders/Given the premier industry positioning,we believe ENTG should trade at least at the group avg valuations currently.This would place the stock at $14 on a current P/E basis and $16 on a price to sales basis.We believe the group is currently oversold and will trade back to the 20-25x from its current 12.8x.We believe Entegris can trade at a P/E in line with comparables at 20-25x 2001 earnings of $0.90,for a price target of $20................ENTG is the leading provider of materials integrity mgmt solutions to the Semi mfg and disk mfg mkts and domintes 4/5 product lines.....All cylinders are firing as the end of the qtr nears....we're comfortable with 19c eps est vs. 9c a yr ago...nearly ALL of ENTG's biz lines are beginning to contribute growth,not just the core 200mm solutions for the semi industry.....favors higher margins expect better than 50% gross margins due to the very high differentiation in their pdts..Next qtr orders looking very strong already...major retrofits on tap requiring complete wafer mgmt pdt upgrades---multimillion $ orders expected....even the disk drive biz shows signs of life as they have a near monopoly in shipping containers for hard drive disks,DVD,CD-ROM disks....WOW!!!!!!!!the stock's only at $11>