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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (5000)	5/5/2004 5:23:56 PM
From: Donald Wennerstrom	Respond to of 5867

Bear Stearns & Co., Inc 5/5/2004 11:49 AM May 5, (JAGfn.com via COMTEX) LRCX: Reit Outperform - have initiated coverage of Lam Research on May X, at the closing price of $XX.XX. We believe that Lam will continue to benefit from both its ongoing strong competitive position and its new operating leverage in the model.*DIELECTRIC ETCH DOMINATION SHOULD CONTINUE. Lam has garnered a technology leadership position in dielectric etch(which accounts for more than 50% of the total etch market). We believe the company can reap the benefits of that positioning as production ramps occur in the continuing industry cycle. In our view, Lam gained about 5 share points in 2003 and could gain further share in 2004.OPERATING LEVERAGE POISED FOR BIG IMPROVEMENT. Lam has traditionally been viewed as a lower tier company in terms of financial execution. In this cycle, we think that the company is proving that it is in the elite in terms of financial performance, with improved margins, balance sheet metrics(inventory turns, DSO).**POSITIVE LONG-TERM VALUATION. While our long-term outlook for Lam shares is positive, the summer could be choppy for LRCX and for the equipment group in general. Our $38 year-end 2004 price target is based on a P/E multiple of 20x, a discount to the overall market that we feel is quite achievable.