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

To: Zeev Hed who wrote (11648)	12/17/1997 10:52:00 PM
From: John Chalker	Read Replies (1) \| Respond to of 25960

To All: Positive note on semi equipment companies. SFAM announced very good results today after close, sales were up 44% vs last year, EPS estimate made at .49 vs .42 last year. Altho they have very little exposure to Korea, I consider this a good sign for the industry as a whole, especially when coupled with AMAT's recent report. The only negative was a drop in order backlog which was well explained on cenference call. My point is that these stocks are very oversold. If SFAM can sell CMP tools, CYMI can sell lasers for steppers. Chalks

To: Zeev Hed who wrote (11648)	12/17/1997 11:42:00 PM
From: Yakov Lurye	Read Replies (1) \| Respond to of 25960

If you didn't jump in yet, watch the SOX/Intel action tomorrow. Intel is at the critical support level (October low). I did expect SOX to turn down when it reached 262+ on three occasions and couldn't go any higher, but the speed with which it went down to previous lows was surprising - it may be related to Friday's expirations. My guess/hope is that SOX will rebound. This should establish current levels as lows for semi-equips for at least a month - and in January the game rules are usually skewed in favor of longs. In this case, I recommend buying CYMI tomorrow as soon as the trend is established - even if you still think that February will be worse. One positive sign - MU jumped up after the close. If, on the other hand, Intel falls through 69 support, consequences for semi-equips valuations will be rather grim. IMO, current semi-equips prices already fully reflect the Street worries about the DRAM glut and orders from SEA DRAM manufacturers - but if the Street thinks that IC producers are also in trouble and shows it by pushing Intel and TI lower, semi-equips will be hurt further. Overall, it is very unfortunate for CYMI longs that techs are caught in a bad downtrend when Cymer is enjoying an unchallenged monopoly, but trends change, and, to quote Mr. Deanha, "Cymer remains the class of the field". Regards, Y.