Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: TideGlider who wrote (7161)	10/29/1997 2:53:00 PM
From: Gerald L. Kerr	Read Replies (1) \| Respond to of 25960

If I heard CYMI management was planning a stock buy back at this stage of the business, I would immediately dump my holdings. It would be clear that management had taken leave of its senses, focusing on tinkering with the stock price instead of focusing on growing the business. This isn't to say they shouldn't be conscious of the stock price and the effect of their actions and statements...just that it shouldn't be primary. My opinions only, Gerry

To: TideGlider who wrote (7161)	10/29/1997 2:56:00 PM
From: Patient Engineer	Read Replies (1) \| Respond to of 25960

TideGlider, Re:"they could buy and then sell at their need" Not true. They can buy if the board says they can buy. They can't sell on the open market without a registration with the SEC. For them to offer stock on the market would be fatal for the stock. It would indicate that management doesn't have confidense in their ability to generate positive cash flow. For a development stage company like Cymer, the pros all look at cash flow and liquidity just as much as they look at earnings. Cymer looks good on the earnings front, but they are a black whole for cash. Some of this is unavoidable (the need to build capacity). Some is due to lack of discipline. If Cymer's receivables were 65 days instead of 90, then they could buy back 500K shares and still have the same amount of cash on hand that they have now. They could also think about acquisitions and lots of other strategies. I've made this point before, but I see Cymer's poor balance sheet as their biggest negative right now.