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To: Just_Observing who wrote (1093)	9/21/2000 10:35:18 PM
From: niceguy767	Read Replies (1) \| Respond to of 1184

Maverick: Thanks for that analysis...Seems like anything over 1.1 has to be considered EXCEPTIONAL for book to bill by any historical standard...Can't wait to see those Q3 AMD results...(Think it's time to sharpen the pencil for Goutama's eps contest)...

To: Just_Observing who wrote (1093)	9/21/2000 11:57:32 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 1184

Great post.

To: Just_Observing who wrote (1093)	10/3/2000 1:34:20 PM
From: Maverick	Respond to of 1184

BridgePoint Technical Manufacturing Selects the INTEGRA J750 Test System from TER biz.yahoo.com

To: Just_Observing who wrote (1093)	10/3/2000 1:46:19 PM
From: Maverick	Respond to of 1184

Alex d'Arbeloff Receives Lifetime Contribution Award to the Test World biz.yahoo.com

To: Just_Observing who wrote (1093)	10/4/2000 10:02:39 PM
From: Maverick	Read Replies (1) \| Respond to of 1184

Reason why TER will beat $826 M order post.messages.yahoo.com At the beginning of Sept '00, ML said J750 logic tester order could be weak due to a shortage of high-speed components. ML also said any improvement in procurement late in Sept could provide upside suprise to both rev and order. From yesterday contract wins, there were a lot of J750 orders. This could translate into the improved procurement of components in much the same way as Agilent did. At first A warns about component shortage, then they handily beat the estimate due to ASIC procurement improvement late in the qtr. The press announcement might be an implicit way to tell investors just that.

To: Just_Observing who wrote (1093)	10/5/2000 4:14:04 PM
From: Maverick	Read Replies (1) \| Respond to of 1184

ML:TER val approaches bottom of cycle,expect it to appreciate by 84% Excerpts from ML 10/5/00 Investment Highlights: • The September Quarter reporting period for Semiconductor Capital Equipment should see predominantly in-line to slightly stronger than forecast revenues and EPS. There are some capacity constraints preventing further revenue driven EPS upside from some companies. Orders on average should grow about 6-7% Q/Q while revenues grow about 10% Q/Q. • Common themes to watch for on conference calls 1) a noticeable acceleration in 300mm forecasts, 2) a noticeable increase in customers moving to copper, 3) DRAM related capital spending is forecast to begin to grow around year end 2000, and 4) a lack of change in outlook – capital spending plans of major semiconductor companies remain intact. • Reducing price targets to reflect valuation realities – maintain ratings and estimates. Concerns on demand for PCs, cell phones, and other technology end products combined with broader macro-economic concerns will temper the valuations of semiconductor equipment stocks even as the fundamentals for capital spending continue to look strong. Thus, we estimate that our previous price targets of 20-25x 2001 on average are generally too aggressive in the new, end market-demand concerned technology investment mind set. As a result we have adjusted our price targets to 18x on 2000 on average, a level in line with the absolute valuation of the group in the last half of the 1993-1995 cycle. This provides an average of 75% appreciation potential for the stocks in our coverage. • We expect that once the inventory sell off from PC and wireless related devices is complete, a more accurate end market growth picture will be attained that will be the impetus for a recovery in Semiconductor equipment stocks. Given the fact that many smaller to mid –cap stocks have reached valuations approaching bottom of the cycle levels, we would expect the group to outperform on positive semiconductor end-market news in the fourth quarter. Rating Stock Price-10/3 Price/2Ksale Price-To_book CY01E-PE Target-CY01-PE New-Price-Target Target-Apprc. 2-1 AMAT $51.63 4.1 7.3 13.9 21 $76 * 47% 2-1 KLAC $37.69 3.8 4.3 16.4 22 $50* 33% 2-1 LRCX $22.06 2.0 5.1 9.4 16 $38* 72% 1-1 NVLS $41.88 4.2 3.8 14.4 21 $62 48% 1-1 TER $32.56 1.9 4.0 8.1 15 $60 84%

To: Just_Observing who wrote (1093)	10/6/2000 8:36:35 PM
From: Maverick	Read Replies (1) \| Respond to of 1184

IR: TER mgmt has been considering unlocking shrholders value all along Just finished talking to Tom Newman, TER's IR. He said the Connection System story is getting better every qtr. TER had considered spinning-off the CS 2 - 3 yrs ago. However, at the time the EMS (Electronics Manufacturing Service) sector didn't garner the same respect and high PE as today. Time has changed. Cos such as Samina (PE=104.5), Jabil Circuit(64), Solectron (57.5), Flextronics (103.8)has such high PEs even with today severe market correction. Even the one highly exposed to the down-trodden PC mkt, SCI has a PE of 25. Whereas, TER has a pitiful CY01 PE of 8.1, P/2000S=1.9. EMS is fundamentally decoupled from TER's core biz. I told him that subtracting the CS, TER has been beaten down by 110% thereby having negative Enterprise value for a multibillion dollar biz. A legal steal by any definition. He assured me repeatedly that the board and mgmt have considered many alternatives to unlock shareholders' value such as issuing tracking stock, spinning-off. Historically, tracking stocks have not done well. He agreed that spinning-off via IPO, or spin-off but retain an equity stake like Empirix - the SW biz - might be the best way to do it. I mentioned SEG to him. Seagate has done everything they could for shareholders by giving cash and Veritas stock to shareholders. He said the board is actively looking, working, thinking about how best to unlock shareholders although they have not announced this or set a timetable for making a decision. Obviously, they showed a willingness to unlock shareholders' values. They empathized and felt the hardship that its shareholders and employees have endured. They indeed have been exploring all alternatives although he didn't expect a decision to be made in the next month or so. This is very encouraging. IMHO, there will be more queries on this subject at analyst meeting and shareholder meeting reaching a crescendo. We have a good shot of hearing a decision in the next few mos. Tom reaffirmed the CFO said that TER would gain 2-4 % total test mkt shr this year. We also discussed about possible merger. Advantest is the dominant player in Memory test holding 48% mkt shr vs TER's 12% share (4:1) last year. In contrast, TER has 2:1 lead in logic testing, and 2:1 lead in SoC test. A merger w/ Advantest would trigger a terrible reaction as they would dominate testing. A merger w/ Agilent might be more receptive. A's product line only overlaps TER's by 10%. A merger w/ others are unlikely as all players mkt cap are very low.