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

To: Czechsinthemail who wrote (14830)	2/19/1998 12:45:00 AM
From: michael modeme	Read Replies (1) \| Respond to of 25960

I'm sorry, I don't follow your argument. Value is a time-dependent function based on the actions of numerous individuals in a market, and as such I would say that Van Gogh's paintings were in fact of little value WHEN HE PAINTED THEM, and that value increased as demand for his paintings increased. Perhaps we are arguing more about semantics than finance. In which case I will ask you to fully explain what is meant when a person states: "CYMI has a fair value of $60". Does this mean "I would pay $60 for CYMI right now"? Does it mean "People should be paying $60 for CYMI right now"? I'm not quite sure what it means. The fact is that the market prices CYMI at $20. And perhaps at a certain time in the future CYMI will be trading at $60. So, the real question is "What is the distribution of future prices that CYMI will be trading at in t time units?"; or more specifically, "What is the expected return on CYMI t time units in the future, given that CYMI is trading at $20 now?". Once defined this way, we can answer the questions under certain stochastic models. Or, at least that's how I approach these problems. Cheers