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Technology Stocks : PRI Automation (PRIA) -- Ignore unavailable to you. Want to Upgrade?

To: Nevin S. who wrote (434)	6/3/1998 7:55:00 PM
From: Paul Getman	Read Replies (2) \| Respond to of 1214

I think the downgrade by H&Q of Intel had a lot to do with PRIA's slide today. H&Q says that Intel will probably preannounce another earnings shortfall for the second quarter, but Intel after the close denied it. Anyway, PRIA and Intel are intertwined, so I don't think PRIA's slide will end until investors are confident that Intel's business is stabilizing. This reminds me exactly of what investors did to bank stocks in the early 1990's. Banks were under tremendous pressure from bad real estate loans and newly instituted capital standards. Many banks failed. Bank stocks plunged to absurd prices: Citicorp, $9; Chase Manhattan, just above $10, etc. Investors didn't care that some banks had made hardly any real estate loans, or only loans that were well collateralized--they were thrown out of the portfolio as well. Nobody seems to care that PRIA has (basically) a lock on automation, or that efficiency and cost cutting will force a move to 300mm (perhaps a little later than we would like), or that PRIA's book value is near $14--they just want it out of their portfolio before quarter's end. Where are the investment banks like H&Q and Morgan Stanley, both of whom thought PRIA was a Strong Buy in the mid-20's? You would think that a $10 drop in price would have more than compensated potential investors for whatever increased risk has developed since March, when they last recommended a buy on the company. But they're eerily silent. Paul

To: Nevin S. who wrote (434)	6/4/1998 12:46:00 PM
From: HB	Respond to of 1214

I don't think that's the problem. Intel press release about delays Friday was driving this market; Intel is a big customer of PRIA. AMAT breaking 30 is spurring fear throughout the sector. PRIA sales are around $10/shr, book around $6+ I believe (absolutely recheck these numbers yourselves before believing them!), I am thinking some support around 1.5x sales (or 15), maybe 2x book, but maybe lower. I have some ASYT but am not back into PRIA yet. Broader market selloff will hit this sector too, if it continues. Cheers, HB