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

To: Rodney Lockhart who wrote (11189)	12/8/1997 1:59:00 PM
From: Yakov Lurye	Respond to of 25960

<Q-to-Q growth, 4Q EPS forecasts> - Rod, several possible reasons for low Zacks numbers: 1) analysts that downgraded the stock (Deanha, Hoddess, maybe the analyst from Adams Harkness?) expect a flat quarter for CYMER due to laser inventory buildup at Nikon, Canon etc, so their estimates are low. 2) I think that the average number of CYMI shares used in fully diluted EPS calculations for 4Q97 will be higher than in 3Q97 (32M vs. 30.5M)- debentures issued in August were probably not fully reflected in 3Q averages, will be fully reflected starting 4Q. I am not sure that my number of shares calculation is correct - maybe a call or e-mail to IR could clear the issue I think that Zack's numbers leave room for a positive surprise in January. Even taking into account possible dilution, Cymer will beat $.20 if they maintain their margins and ship more lasers than in 3Q. Regards, Y.

To: Rodney Lockhart who wrote (11189)	12/8/1997 2:55:00 PM
From: Cymeed	Read Replies (1) \| Respond to of 25960

Rodney, the quarter-to-quarter growth is referred to as "revenue", not earnings. As Cymi is concentrating on bringing up capacity and increasing field service, the head counts will increase drastically. At the same time, training related spending, capital related spending (expense part), and reserve for previous model change-out, etc will continue to eat margin in the near term. Over a long term, however, margin should drastically improve. Near term Cymi has reasons to be weak (Hilight the "S" of reasons). But what we are talking about here, at least IMO, is long term. This is another reason that the stock is not a good candiate for day traders. But for people who can wait for >3~6 months or even longer, I personally believe it's a good buy. Back in early 1996, I thought Best Buy (BBY) was going to go bankruptcy, their stock dropped from $20 ~ $30 to $9. See where is best buy now ? ($37 today). Stocks just over shoot in both ways. IMO, if we have patience, it will be rewarded. Good luck to each and alll, Cymeed