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

To: nycnpbbkr who wrote (6244)	10/24/1997 10:34:00 AM
From: JRGEE	Read Replies (1) \| Respond to of 25960

I saw this on the SFAM thread. Mr Sam is very wise. To: +TEColeman (2083 ) From: +Mr. Sam Tuesday, Oct 21 1997 9:45AM EST Reply #2087 of 2092 <<Mr. Sam, Haven't heard from you in awhile. Any thots on today's move?>> Let me comment on the recent weakness in SFAM and why I think we'll see some short-term strength soon. The weakness was due to the following factors, IMO: 1) SEMI announced the equipment book:bill, which showed three straight monthly declines on a seasonally-adjusted basis. 2) Several companies missed earnings estimates including AMD, INTC, LSI, and others. There was also continuing talk about weakness in the memory disk/disk drive sector. This customer weakness started a correction in the whole sector, a correction that hit SFAM and all of its peers. 3) SFAM was trading at its all-time high valuation when looking at trailing numbers. P/S peaked at 5; price/(cash flow) at 32.3; P/B at 6.3; and, P/E at 37. (All of these numbers are calculated using the trailing twelve months ending 8/31/97 except book value, which uses the 8/31/97 quarter's number.) It was trading there on expectations of an outstanding 1998. As those expectations came into question, the valuations were hurt a bit. Why may the weakness be nearly over? 1) The stock traded down to some weak support around $47. The next decent support is at $40, and we may get there yet before this correction is over, but so far, the ~$47 support seems to be holding. 2) With the correction, the valuations have returned to more moderate levels. Right now, the P/S is 3.35, P/B is 4; P/E is 29. (Again, numbers calculated using the trailing twelve months ending 8/31/97 except book value, which uses the 8/31/97 quarter's number.) Comparing SFAM's valuations to its peers, it is clearly priced attractively. 3) There is still good news about the sector's prospects in 1998 and 1999. There was a lot of talk at the Microprocessor Forum in San Jose last week about accelerating process development. This will benefit all CMP manufacturers. Intel, Samsung, Siemens, AMD, and others continue to invest in new fabs. Samsung is buying 350 tools (of all kinds) to equip their 125,000 square foot facility in Austin--the largest fab in the country. Their oxide polishers are being purchased from SFAM. 4) On a very short-term basis, the good earnings from IBM and MSFT may provide some support for the tech stocks today.

To: nycnpbbkr who wrote (6244)	10/24/1997 10:50:00 AM
From: Ian@SI	Read Replies (2) \| Respond to of 25960

Ken, What is the source of information re CYMI and HP's inkjet print heads? Is there a net source that I could see? Art Z. of UTEK told the NYSSA this August that he had the overwhelming majority of that market. Their steppers do not use lasers - from CYMI or anyone else. Ian.

To: nycnpbbkr who wrote (6244)	10/24/1997 12:59:00 PM
From: Tim Bagwell	Read Replies (1) \| Respond to of 25960

This agrees with what I have heard. I didn't know this was public knowledge but now I see now that it is. Sales of inkjet cartridges should grow at a healthy pace which may mean more CYMI lasers for micro-machining down the road.

To: nycnpbbkr who wrote (6244)	10/27/1997 1:19:00 PM
From: Tulvio Durand	Respond to of 25960

re:Hey, who spent $1 million for two DUV lasers for a non-litho application? And what are they being used for? You answered: Cymer lasers have been used for Hewlett Packard inkjet printer head fabrication or R&D in the past. (HP -- Also in Rancho Bernardo.) I would expect that the two orders for the high power version of Cymer's laser is for this purpose. The two lasers have been delivered to Sematech according to Ian Stromberg. exchange2000.com Regards, Tulvio