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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (1728)	1/14/1998 11:44:00 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 5867

Kirk, Lam has a PSR of ~.7 while AMAT, KLAC, and UTEK have 2.6 or more. Lam is currently trading at about BV, while AMAT and KLAC are about 3-4X that. IMHO, if any further surprises come from this point on regardsing Asia, Lam is less likely to plummet. The Book Value acts as a buffer zone. Lam got Bagley last August as CEO. He is largley responsible for AMAT being where it currently is. Lam has cutting edge etch. They lost some market share, but if they can implement 300mm well hopefully the share loss is an ephemeral thing. The market currrently values 2nd tier companies much less than the leaders, part of the reason why AMAT has, and probably always will have the premium. Take advantange of the markets shortsightedness in terms of small cap, illiquid stocks; it plays into your favor at this point. There are probably more that could be added, but IMO the reasons are plenty to buy Lam at these prices. Regards, Brian

To: Kirk © who wrote (1728)	1/20/1998 8:54:00 PM
From: Jong Hyun Yoo	Read Replies (1) \| Respond to of 5867

I like Lam shares because of the fact that it has the lowest PSR of all equipment stocks. Lam has alot of installed bases all over the world and its revenue has been solid and growing... The problem that Lam is currently facing is the issue of the gross margin on the new Alliance based TCP products. Since the transition to the new product is occurring at the rate faster than anticipated by the company, Lam has failed to achieve a reasonable gross margin like its competitors such as Applied Materials.... If Lam's earning was falling becuase of decrease in revenue and market share loss to the competitors, Lam is in trouble.. However, Lam's earning short fall comes from gross margin problem attributed the manufacturing efficiency. With Bagley as a new CEO, I think gross margin problem can be resolved by late 1998... When this happens, Lam stock performace should exceed that of other equipment manufacturers.