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Technology Stocks : Speedfam [SFAM] Lovers Unite ! -- Ignore unavailable to you. Want to Upgrade?

To: Paul Getman who wrote (2763)	2/10/1998 10:47:00 AM
From: David Kuspa	Read Replies (1) \| Respond to of 3736

The answer to why Lehman brothers still rates SFAM a buy is in the "A" and "C" disclosures at the bottom. disclosure legend: A-Lehman Brothers Inc. managed or co-managed within the past three years a public offering of securities for this company. C-Lehman Brothers Inc. makes a market in the securities of this company. I also found the notes interesting, as the company did not elaborate on these facts in its press release: >>* The company's rampup in CMP revenues will be slower than expected, since three South Korean orders will not materialize. There has also been weakness in demand from U.S. and European DRAM manufacturers. * Sales of disk media polishing equipment, sold through the company's 50% joint venture, SpeedFam KK, are weak. This will not affect revenues, but will result in a decline in joint venture income in 4Q. * The company's cost structure is high. R & D expenses are above normal, because the pace of the revenue rampup is too slow to adequately cover support costs on the new Auriga C. Development work on advanced technology continues. * SpeedFam's strong position in the CMP market should drive strong CY99 growth. Customer interest in SpeedFam's CMP products is high. The near-term climate is difficult, but the shares still appear to be attractively valued.<<