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

To: IMPRISTlNE who wrote (14526)	2/10/1998 8:28:00 PM
From: Apple12	Read Replies (1) \| Respond to of 25960

Taiwan chip business news alert: Analysts said it's clear why companies are jumping or investing into the foundry business at a frantic pace. The worldwide foundry business will more than double over the next three years, from $7.967 billion in 1998, to $15.46 billion in 2001, according to Dataquest Inc. in San Jose. At the same time, Hsinchu-based Taiwan Semiconductor Manufacturing Co. (TSMC) Ltd., the world's largest foundry concern, and some of its competitors, have reported huge profits despite a slowdown in the worldwide IC business.

To: IMPRISTlNE who wrote (14526)	2/10/1998 8:44:00 PM
From: michael modeme	Respond to of 25960

To some extent I agree with Raymond. Obviously, CYMI's value as a company is not 40% what it was 6 months ago -- that's insane. CYMI was overvalued at $49, and it is now undervalued at $19 + change. The fundamental of CYMI have not changed much to reflect the drastic change in the stock price. CYMI's outlook remains healthy. Future earnings are only mildly affected for the next couple of quarters, then the outlook is the same as before: excellent earnings growth, accellerating earnings growth. There is more uncertainty now, but not much more. A large portion of the decline is due to falling out-of-favor with the street; not long-term fundamentals. This suggests the strategy to buy now, and hold for the long-term. Only sell if revenues, margins, backlog, etc. start to decline. IMHO

To: IMPRISTlNE who wrote (14526)	2/11/1998 8:32:00 AM
From: raymond marcotte	Read Replies (3) \| Respond to of 25960

IMPRISTINE, where have i been? none of the heavy equipment makers or the fabs have had a decline equal to cymi. as i said, i still am missing something here. the real risk in getting a high debt/equity ratio is that the company has no internal source of working capital, r&d suffers, and if not earning $ then the payments must come out of other sources. my preferences for companies that are young and subject to fluctuations in income, is that they have zero long term debt. if you review all of the companies in the chipmaking business you will find that almost all of them have none. amat which has the highest r&d budget in the industry has a d/e ratio of 0.21. and, intel's ratio is only 0.02. so, when i see cymer, in an admittedly risky business from a technological perspective, with a ratio of 1.47, i am quite concerned as a stockholder. there are other places to take my risky capital.