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

To: Lex Luther who wrote (13893)	2/2/1998 1:54:00 PM
From: Nevin S.	Read Replies (3) \| Respond to of 25960

LL: I definitely agree with you re: how far out Wallstreet is looking when it comes to earnings. But, the risk in this company is that if it takes 2-4 quarters for earnings to get back on track, that's 6-12 months out into the future. That's another 12 months for guys like IBM to squawk about x-ray or someother new technology for sub .18 micron geometries. (I DO NOT BELIEVE THAT X-RAY OR E-BEAM WILL COMPETE FOR THE FORSEEABLE FUTURE) For Wallstreet time is risk. Look at companies like APM they were making an orderly transition from TFI heads to MR. Oversupply in the market for hard drives forced that transition to move at a quicker pace. Look at C-Cube, they were ostensibly the leader in digital compression technology. Delays in the roll out of a DVD standard gave competitors time to bring their own products to market (or rather flood the market with cheap imitations) The point I'm trying to make here is, time is risk to Wallstreet. Will CYMI get back on the earnings fast track before someone else announces some new technology whether real or imagined (remember Cu,). Again, I have done extensive reading on the subject and I put my money where my mouth is and bought CYMI - unfortunately at 37, 35, and 30 not 15 or 16. I am still a CYMI booster but there is still some risk in this company from the perspective of its stock price. Management seems to be very qualified. I like the fact that they will use this year to create differentiated products and try to distance themselves from the competition. And, to flush out their network of service and support, which will help solidify their position as leader in the DUV laser market. These things are great, but there is still risk given the fickle nature of the Street.

To: Lex Luther who wrote (13893)	2/2/1998 2:14:00 PM
From: blankmind	Respond to of 25960

One of the more significant variables that we haven't really been able to factor into the equation is the potential exponential revenue growth in service and spare parts that could take place in the coming quarters. --- lex luther companies view repairs, maintenance, mtbf, ... when purchasing equipment. if cymi appears to have equipment with high maintenance costs, this will not factor favorably in purchaing the lasers. i am very happy cymi realizes other sources of revenue, and not leave this lucrative area to third parties only. dec, ibm, orcl, msft has made a fortune on service, maintenance, and support agreements.