To: ForYourEyesOnly who wrote (9489 ) 11/13/1997 9:50:00 PM From: Peter V Read Replies (3) | Respond to
This stock buyback theme that continues to run through this thread borders on the ridiculous. From Yahoo's profile on CYMI, they have $30 million in cash ($1.06/share and 29.3 mil shares). If they were to announce a buyback of one million shares, and the price bounced back up to $30, that would consume every drop of cash the company has.
Yet all of us want CYMI to conduct research to stay ahead of Komatsu and Lamda Physik. How can they do that without cash? The company has a duty to its shareholders to make intelligent management decisions for the good of the company. It does not, and should not, have a duty to attempt to manipulate the stock price by announcing a buyback.
I know there are a lot of people that have tremendous paper losses in CYMI. Although I understand your frustration, you cannot expect CYMI to prop up the stock price. The company has no control over the price, nor should it. The market dictates the price. And when CYMI comes out with bang-up earnings, and stays ahead of the competition with new products, the market will eventually react accordingly.
If anything is to be done with Cymer's cash, Cymer should hire a good PR firm to prevent what has been a PR nightmare that caused this mess in the first place. Other than that, CYMI should use its cash to maintain its position as the dominant player in the excimer laser field. After all, that's why we bought this stock in the first place, isn't it?
I support TechHunter's visit to the company to express shareholder's concerns and get the scoop from the company firsthand, but don't expect the company to support a buyback.
