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

To: jeffbas who wrote (385)	3/17/1998 3:15:00 PM
From: Nevin S.	Read Replies (1) \| Respond to of 955

Question: I'm new to DPMI but what got me interested in this company was the belief that they were selling essentially a consumable or expendable product. As a consequence, they do not rely on chip manufacturer capacity expansion/upgrades for the majority of their business. AMAT on the other hand will do poorly when chip companies are not in expansion/upgrade mode as many have suggested will be the case until late '98 or early '99. By the same token, DPMI will sell the same number of masks whether DRAM prices fall by 50% in a given year all else being equal. In this vein, even though the dollar volume of chip sales (produded) this year is expected to increase only modestly, the volume of chips produced will increase significantly (with ASPs falling). Therefore, DPMI should be able to increase revenues even if chip sales are flat this year. This assumes prices charged for photo masks remain constant. I realize that if the chip equipment segment gets hit later this year DPMI will be found guilty by association and its stock price will suffer as well.