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

To: jeffbas who wrote (574)	5/6/1998 10:23:00 PM
From: Duane L. Olson	Respond to of 955

Jeffrey.. Sorry, I don't follow MASK at all. I really like PLAB and would consider it as a rational alternative to DPMI --or a ratioinal addition to a DPMI investment. PLAB is highly capable in the phase shift mask area, I understand, and that is an area considered by some to be the "bottleneck" to masss movement to .18u. In other words, PLAB would be expected to benefit greatly from any surge in demand for masks at the .18u design width level. TSO

To: jeffbas who wrote (574)	5/6/1998 10:33:00 PM
From: Duane L. Olson	Respond to of 955

Jeffrey, to add slightly to the info, re: your query about MASK, here was an extract from a Lone Star analysis: The estimated earnings growth of companies in this sector are impressive - much higher than estimates for the overall economy - and for long term investors current prices for some companies look attractive. Using a value based approach looking for future growth with limited downside, as long term investors we like Model Portfolio companies Ultratech Stepper (UTEK), FSI International (FSII), and Align-Rite (MASK) - especially if these stocks should dip from current levels. Semiconductor equipment manufacturer UTEK has a consensus estimated long term earnings growth rate of 28.7% according to Zacks, a price to book ratio of 1.6, and carries no debt. FSII has an estimated long term earnings growth rate of 25.0%, a price to book ratio of 1.1, and carries a low debt/equity ratio (0.16). Both companies have good products, technology, and management. Photomask manufacturer MASK is somewhat less cyclical than other semiconductor equipment stocks since circuit designs are always being modified and upgraded which requires new photomasks. Zack's has an estimated long term earnings growth rate of 20.0% for MASK, a trailing price to earnings of 13.4, a price to book ratio of 1.9, and it carries no debt. The company is a micro-cap, with a capitalization of around $70 million. Carl Johnson of Infrastructure, in an interview on the Internet Financial Connection, noted that they like photomask makers Photronics (PLAB) and DuPont Photomask (DPMI) for the same reasons we like MASK. PLAB has a consensus long term growth rate of 23.6%, a trailing price to earnings ratio of 25, a price to book ratio of 3.3, and a debt/equity ratio of 0.36. DPMI has a consensus long term growth rate of 20.6%, a trailing price to earnings ratio of 18, a price to book ratio of 2.6, and carries no debt. Both PLAB and DPMI are attractive long term investments in our opinion, but have not been included in our Model Portfolio (Unquote) Hope this is of value.. TSO