Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dupont Photomasks (DPMI) -- Ignore unavailable to you. Want to Upgrade?

To: Duane L. Olson who wrote (142)	2/21/1998 12:20:00 AM
From: jeffbas	Read Replies (3) \| Respond to of 955

Seven quarters in a row (counting this one) without sales growth, during a period without a recession in the underlying industry, sure sounds like cyclical growth to me. I started a discussion here about the net effect of more complicated chip designs requiring more masks versus the absolute loss of chip designs from simple chips no longer being produced, because their functions were consolidated into more complex ones. I did not hear a clear answer as to whether the mask growth rate was higher or lower than the industry growth rate. The paragraph above suggests it might be lower. I frankly am concerned about more negative earnings surprises, albeit modest in size because of basic stability in the business. These new facilities and expensive equipment will clearly add a lot to depreciation charges against earnings. A flat sales environment suggests that the new capacity may not be put to work fast enough to prevent a drag on earnings from depreciation. Therefore, I will not be surprised if earnings for the current quarter are less than $.50, or below Street estimates. However, I am a long term investor, and I think this is a good long term investment. There are many things to like. But I would be surprised to see a price over $50 during the rest of the year.