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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RMP who wrote (4109)	7/17/2002 8:46:11 PM
From: Crossy	Read Replies (2) \| Respond to of 95427

Ron, thx for bringing KLAC news to our attention. Seems like its credentials come with a valuation premium not to underestimate. At $44 it commands a Price/Sales ratio of around 5.. The whole segment KLAC operates in is interesting. Broadly defined as "metrology", the measuring of dimensions or any other physical, electrical or chemical property in a semiconductor production process.. Other US domestic players include NANO, TWAV, RTEC and to some extent maybe also TMO and COHR Foreign players include Dai Nippon Screen, Kokusai Electric, JEOL, Sumitomo Heavy Industries, Shimadzu and Topcon - all listed in Japan, either on Tokyo's 1st section or on the OTC. The ther's German Firm Tepla AG which lists in Frankfurt. The intersting point here is that Japanese and Germany's firms in the metrology sector are usually way cheaper and have mostly completed their turnaround as well. I checked PSR ratios with Topcon (PSR 0.25) and Shimadzu (PSR 0.45) and Tepla AG (PSR 0.45) but the German firm is going to become profitable again next year while the japan companies are already in the black now. Since a rising tide should lift all the boats, I expect the whole metrology sector to do rather well in the comeback of the technology sector. I just would think that the Japanese players return should outperform their US counterparts because of the rather large valuation differential... rgrds CROSSY

To: RMP who wrote (4109)	7/17/2002 9:55:29 PM
From: Cary Salsberg	Read Replies (3) \| Respond to of 95427

KLAC is one of my 4 semi-equips. I don't trust any analyst who pushes KLAC and detracts from AMAT. You can't fabricate a wafer without tools from at least 3 of the 4. AMAT and NVLS overlap. Long term, it is very difficult to make an argument that includes one and excludes another. AMAT is still my number one of the 4. KLAC may grow faster, short term, because the number of its tools on each production line increases as line widths shrink. On the debit side, one of KLAC's smaller competitors, the only one that counts, is AMAT.