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

To: H James Morris who wrote (12083)	12/30/1997 12:46:00 AM
From: Yakov Lurye	Read Replies (2) \| Respond to of 25960

<re: CYMI price and recovery in SOX stocks>. A recovery in SOX is a must for an improvement in CYMI price, and I still view the short-term SOX trend as positive. Unfortunately, a slow (8-10 points a week) recovery may prove insufficient. SOX and most of semi-equip stocks did recover from Dec.15 lows, while CYMI did not. The 15 points improvement in SOX has been wasted. Note that SVGI and ASMLF - two of CYMI's customers - were both up nicely today, but not CYMI. Our short-term problem is that the stock is badly out of favor. Recent Cramer's piece on CYMER was very typical. Clearly, he does not follow CYMI closely, yet feels comfortable using it as an example of an overvalued momentum stock that dissapointed the Street first with production problems, then with a basic change in fundamental outlook. No mention of the fact that the ballyhooed problem was successfully resolved - quite likely, he is not even aware of it. That's probably true of the vast majority of fund managers. They aren't going to do any independent research on a company that presumably had problems, it's much easier for them (and maybe more prudent) to ignore it until the analysts change their tune. Why bother with Cymer when AMAT is on sale? For an investor with the long horizon, CYMI represents a great value, but for my JAN15 calls I need a fairly sharp SOX rally real soon - otherwise by the time it occurs, CYMI will be improving from 14 to 16. To this extent, today's SOX performance (up sharply at the opening, then sliding down for the most of the day) was a big disappointment. Y.