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

To: Curlton Latts who wrote (7195)	10/29/1997 5:45:00 PM
From: F. Lynn	Read Replies (4) \| Respond to of 25960

Buying back shares at this stage in their corporate development would rightly be interpreted as a cynical attempt to manipulate share prices. The most relevant question concerning implementaion of share buybacks is not: Have the shares gone down?, but rather: IS THIS THE BEST PLACE TO INVEST CORPORATE FUNDS? Take IBM. with shares trading at a low multiple of earnings (10x) or so, IBM theorectically gets a return on 10% of share buybacks, which is lower than ROE (25%), but IBM does not need more equity, so it still makes sense. Cymer has a trailing pe pf 88.79, according to bloomberg, meaning the return on a share buyback iss 1. something %, while ROE is 16.91%. given this, and given their incredible need for cash, buying back stock would be a very reckless use of funds. companies who buy back shares are saying "we cannot grow the business." for cymer to say this would be a diaster, given their pe.