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Technology Stocks : Kulicke and Soffa -- Ignore unavailable to you. Want to Upgrade?

To: Donald L. Dominicci who wrote (2233)	12/2/1997 10:02:00 PM
From: John Sikora	Read Replies (1) \| Respond to of 5482

Donald, Tech investors and more specifically semi-equipment investors are like salmon moving upstream given the backdrop of world events. SEA and it's ramifications on equipment companies is at best unknown and visibility that seemed so clear a couple months ago has vanished....So have the buyers... The recent crash and possibility of shrinking corporate profits resulting from revenue shortfalls asociated w/ SE Asia aren't helping matters either. KLIC will do well where others may not based upon it's competitive edge in it's marketplace and dominant marketshare. If you're done accumulating forget about the stock for 6 months... john ps. I know you are an SFAM investor as well. I added to my position today in hopes of a short term bottom

To: Donald L. Dominicci who wrote (2233)	12/2/1997 10:51:00 PM
From: semi engineer	Read Replies (2) \| Respond to of 5482

Don I realize the market trend is not on our side and I am violating every rule(never fight trend) but I am going to stick out on this one. Let's just hope Scott bullish stance on last month does not change in few weeks. Profit margin: In every business, there is a fix cost such as building, depreciation, supporting group. This is overhead in the operation. Even though the total quantity produced is zero, the cost will be there. This is distributed equal on each unit. Thus, first 950 bonders(made up number) may cost $ X to produce but incremental unit cost of additional bonders cost is much lower since the fixed cost has been already absorbed in first 950 bonders. Thus, if Scott calculated $.37 using let say shipping 950 bonders, then, the any additional bonder ship will have a higher gross margin than the average. Since average margin last quarter was 41%, I am assuming that the incremental margin on the new units are 50%. Maybe, they are giving away but I don't think so.