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

To: Duane L. Olson who wrote (561)	5/5/1998 12:25:00 AM
From: Bollmonster	Read Replies (1) \| Respond to of 955

Hey Duane, Your rationale sounds pretty good. Although CYMI expects to increase ASPs with more advanced models (the 5010 and the Orion), it doesn't seem like it'll be anywhere near the % gain that DPMI will see. Do you know what'll happen with DPMI's margins as they go to the higher revenue masks. Granted, it's a lot easier to squeeze $3000 (arbitrary figure) out of a $16 K mask than it is with a $4 K mask, but how much more are they going to have to invest with capital equipment, etc. I apologize for the novice questions, but I've been trying to learn about DUV lasers lately and I have no clue about mask manufacture. Thanks, Bollmonster

To: Duane L. Olson who wrote (561)	5/5/1998 12:27:00 AM
From: jeffbas	Read Replies (1) \| Respond to of 955

I agree 100% with the idea that the move to lower feature sizes is leveraged in favor of DPMI over CYMI. But don't forget that for DPMI this advantage is watered down by being mixed in with larger feature size slower growing mask revenue. Let's say only for purpose of discussion that the result is that DPMI and CYMI grow at the same rate. However, if this is the case, I still prefer DPMI because its revenue stream would be more stable, because of the lower P/E and because of the DuPont connection. I do not own CYMI, but am starting to look closely at ETEC. Five more points down would certainly do it for me. What I do not like there (aside from the periodic machine delays, which are a given) is that much of their improved results are coming from near monopoly power based price increases, not number of unit increases. This is a less stable situation that one like DPMI where sales are helped by the inherent trend to more masks due to more complex chips.