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 : Ultratech Stepper -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (2389)	4/26/1998 8:08:00 PM
From: Carl Mays	Read Replies (3) \| Respond to of 3696

The source of the article is Peter Dunn, editor of wafer news. Peter is plugged in with many sources including ISI people. He has reported several times on this potential merger. Second source, stockholders of privately held ISI received formal notification dated April 9th from ISI "reagrding the proposed sale of substantially all of the assets of ISI to a subsidiary of Ultratech Stepper, Inc...." Ultratech signed a letter of intent several weeks ago and the managers of both companies have been meeting to coordinate the merger of operations, the purchase will be reviewed at ISI's board meeting on May 11th. I don't know why this was not discussed during the conference call or why others have not reported on this transaction. I agree that Art Z. has a solid reputation for negotiating favorable deals. As a matter of fact the above referenced letter also informed stockholders that they would not be receiving any of the proceeds from the sale. Art is negotiating a bailout directly with the banks. One of my previous postings referred to the "bankruptcy" condition of ISI. I really don't see anything that points to value generation for this stock related to future earnings(revenue and earnings decline for 7 straight quarters.) However, there may be a great potential (although at a much higher risk level) as a result of these strategic acquisitions to position Ultratech for sale. To me there seems to be three directions for the future: 1.) current served market and products - declining revenues and earnings, increased focus and encroachment from top three lithography competitors. 2.) acquire new technologies and bring to market - very expensive (even if companies are purchased cheaply) look at the R&D expense for Nikon, Canon and ASML - this will keep earnings down for the future. 3.) acquire technologies and sell company to industry leader. I have some room based on my purchase price of the stock but I do sense a change from a value situation to a speculative situation(which is not my investment style.) I would appreciate all comments relative to the investment aspect of this company (I have reviewed some of the historical postings and sense there are some real Ultratech fans in the group.) Thanks, Carl