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

To: Elroy Jetson who wrote (14287)	2/6/1998 4:15:00 PM
From: Matt Webster	Respond to of 25960

OT - QCOM... QCOM is the Cymer or ASND of today -- AVOID. Like ASND last summer, they have misled their analysts (intentionally or not) and are at the high end of any rational valuation. I think they will slip to 20-25x earnings of $1.20 (new estimates coming), which means a price in the 30's. They will not bounce up until we see earnings growth. We may not see earnings growth again for this stock, either. My position opened today is 6x Mar 40 puts at 1, with 2x Feb 45 calls at 3 3/8. Looking for a bounce in the next couple of days, followed by slide to 30's. This is a stock I would not be on one side of, as options let you make money either way. I also am not of the belief that this is a stock that should be a core, long-term holding either. The Q Phones are not that great, and CDMA is not a key technology. It's a nice technology, but the world would not be at a great loss if we stay with analog cellular or GSM. Matt