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

To: D.J.Smyth who wrote (6655)	10/26/1997 3:32:00 PM
From: sepku	Respond to of 25960

>>>The New York Times article stated CYMI trades at 34 times 98 estimated earnings. This is incorrect. It actually trades closer to 24 times 98 earnings, and these earnings are for $1.04 to $1.10 a share based on CYMI selling only 400 lasers.<<< Thanks for the p/e info...I was just pondering the NYT's numbers this morning. I think they meant trailing earnings. At 24 p/e on 1998, and 40% growth...we have a PEG ratio of 0.60 with CYMI currently trading at 28. This indicates fair value at around $46.66/share. Style Pts.

To: D.J.Smyth who wrote (6655)	10/26/1997 3:58:00 PM
From: sepku	Read Replies (5) \| Respond to of 25960

>>>The New York Times article stated CYMI trades at 34 times 98 estimated earnings. This is incorrect. It actually trades closer to 24 times 98 earnings, and these earnings are for $1.04 to $1.10 a share based on CYMI selling only 400 lasers.<<< I just realized that your figures are incorrect. Earnings for 1998 are projected anywhere from 1.80 to 2.20...I've even seen estimates as high as 2.50 ... your numbers are closer to the current fiscal year estimates. So my previous PEG numbers were assuming little growth. If you take the mean of the '98 eps range at 2.00 and enter that into the equation based on CYMI at $28, you get a PEG ratio of 0.35 -- or CYMI currently sitting approx. at 35% it's fair value. So CYMI would be fully valued at $80 based on $2 eps in '98. Style Pts.