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

To: Yakov Lurye who wrote (11177)	12/8/1997 2:38:00 AM
From: Yakov Lurye	Respond to of 25960

<IMPORTANCE OF GOOD EARNINGS & RELATED QUESTION> From Barron's, picked on another thread: Have you ever wondered what prompts Wall Street's big boys to pull their billions out of one stock and put them into another?.... ...Among the 122 outfits that responded to Merrill's poll, the top strategy was buying stocks of companies that had just delivered higher than expected earnings and selling those whose earnings had fallen short. On Wall Street, these occurences are known as "earnings surprises". As the accompanying table shows, this strategy layed a role in the stock selections of 54% of the institutions: WHAT THE PROS WATCH: 54.1% Earnings Surprise 50.8% Return on Equity 48.45% Analysts earnings revisions 48.45% Price-to-cash flow ratio 45.9% Projected five year profit growth 43.4% Debt-to Equity ratio 41.0% Earnings momentum 38.5% Relative Strength 34.4% Price to earnings ratio 33.6% Price to book ratio 33.6% Analysts' opinion changes 31.1% Earnings variability 27.9% Price to sales ratio >> Now a question for accountants on this thread: Last fully diluted EPS for CYMI was calculated based on 30.5M shares. My understanding is that fully diluted EPS uses an AVERAGE number of shares, convertible debentures, stock options for the quarter. If 2M+ debentures were issued in August, what was their contribution to the 30.5M number? My guess is 2M33% - they were counted only for the last month. If so, next quarter EPS will be based on roughly 32M shares (30.5+ 2M.67), this not counting additional stock options. May this be the reason for the relatively low EPS consensus among analysts? Clarification, anybody? Thanks in advance, Y.