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

To: Curlton Latts who wrote (17193)	4/28/1998 9:37:00 AM
From: Rustam Tahir	Respond to of 25960

Jay Deahna presented his DUV Photolithography Food Chain thesis on the Morgan Stanley Squawk Box yesterday afternoon. Most of the information given is allready known to readers of this thread. Nevertheless, it is encouraging to hear an analyst trying to sell brokers on the merits of buying into this sector. A few tidbits: Part of the reason for last year's order backlog was that Nikon was very aggressive in purchasing lasers from Cymer in a disasterous attempt to stockpile lasers and prevent the other stepper manufacturers from achieving their production goals. When Japan and Asia went bad (plus their own manufacturing problems), they got skewered with a huge inventory which they are only now paring down to a manageable level. Deahna continues to believe that by the end of the 2Q a pickup in orders should commence. He told the brokers that now is the perfect time to buy, right before the uptick in orders. Cymer continues to be plagued by its fall from the high forties, as a broker questioned whether or not its technicals are solid vis-a-vis its drop. Deahna rates ETEC as the best play in the DUV group. ASMLF is the 2nd choice. ETEC is chosen for valuation, its ability to remain one step ahead of its competitors, and the fact that it has not experienced any push-outs. ASMLF is chosen for its rapid rise to the number two slot among stepper manufacturers. He thinks they anticipated the move to DUV better than the others and will continue to grab market share. He dismisses SVGI. Eventually, he says, Komatsu and Lambda Physik will sell production quality lasers, but as of now Cymer has 100% of the lasers used in chip manufacturing.