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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?


To: AJM who wrote (6177)10/24/1997 1:30:00 AM
From: Maxwell  Read Replies (1) | Respond to of 25960
 
<<CYMI has built capacity to produce 1000 lasers/year, yet will run at only about 75% of that capacity in 1998. Economically, that is not a smart move if they don't plan on using that capacity in the near
future (MicroEconomics 101). >>

Capacity, even though you don't need them all, is very important to fend off your competitors. The worst thing you want is not be able to fill the order and your customers go to your competitors. In short, capacity is cheap compared to losing customers.

Maxwell



To: AJM who wrote (6177)10/24/1997 1:34:00 AM
From: Stanley L Brown  Respond to of 25960
 
AJM,

Im really glad we are talking about capacity that will most assuredly be put in to use before 4th qtr 98, and not mayonaise here! :)

Happy Trading

Stan



To: AJM who wrote (6177)10/24/1997 8:00:00 AM
From: BillyG  Respond to of 25960
 
Also, the incremental cost of adding extra capacity is probably less when it is tacked on top of an existing expansion project than if it is done as a separate project at a later time. So . . . CYMI may have been shrewd to add more capacity than it needs in 1998. And as Maxwell said, if demand surges, CYMI doesn't want to be caught short in capacity.

Think about it shorts!