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

To: Barry who wrote (637)	5/28/1998 9:31:00 PM
From: jeffbas	Respond to of 955

My evaluation is slightly different. There are two DuPonts here, DPMI and the parent. Recall that most of this offering was the parent's stock. Also, note from SEC filings that DPMI has an unused $100 million line of credit at very favorable rates from DuPont. I think there are two issues here. DuPont, the parent, has probably decided that the stock was not a good sale under fifty. DPMI, the sub, who had probably decided originally that it would not hurt to piggyback some stock on the parent's shares at a decent price, now concurs with parent - figuring it is cheaper to use line of credit over the short term. The very clear implication to me is that they both believe that the fundamentals for the company are strong and that they will definitely get a better price down the road a piece. Note that this was not an issue of getting the deal done, somewhere under $45, since this is an institutional quality stock with first rate underwriters. Therefore, this gets added to the reasons I love the company, and I hope we get a further break in the market to drag it down (especially since I am now less positive on my second choice, ETEC).