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Technology Stocks : FSII - The Worst is Over? -- Ignore unavailable to you. Want to Upgrade?

To: Joe Dancy who wrote (1755)	2/9/1998 12:21:00 PM
From: Joe Dancy	Read Replies (1) \| Respond to of 2754

This may be what we hear from AMAT Tuesday: yahoo.com

To: Joe Dancy who wrote (1755)	2/9/1998 12:49:00 PM
From: Running Bull	Read Replies (1) \| Respond to of 2754

Joe Thanks for sharing your analysis. It is hard to argue that the long term won't be good. The question is, which horse to ride. I hope FSII is one of the good ones. Why do you think they will benefit from the industry trends?

To: Joe Dancy who wrote (1755)	2/9/1998 11:33:00 PM
From: Donald Wennerstrom	Respond to of 2754

Great article Joe. Thanks for sharing it with us. As far as FSII goes, I have a question/concern similar to that stated by Running Bull. Is FSII really going to get back on the growth track, and if so, when? Why are they going to be one of the winners in the upcoming long term boom in technology? We have previously discussed in some detail on this thread about FSII's commitment to R&D and their large capital investment in new facilities. Their capability to be a $600M per year company has been put in place many months ago, but they are presently running at less than $300M per year. I have had some experience with knowing how much this lack of revenue compared to its inherent size can hurt a company. There are fixed costs that can't be done away with once the facility is in place. There is only one way to cure the problem and that is to obtain commensurate bookings to the size of the facility. I had hopes late last year, prior to the breaking of the Asian crisis, that this would be the year when FSII would be able to increase their bookings substantially. Now this has been put off for probably at least 6 months and maybe longer. In the meantime, the fixed costs just keep eating away at them. It will be 2 years in June that I first bought FSII at $13 per share. Today it closed at $13.50. Certainly, it doesn't look like bookings are going to go up in the next 6 months - to hold even with the past would probably be doing well. I wanted at least one long term investment in the semi-equips, but little did I dream it would be this long!!! <g> Regards, Don W.