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Technology Stocks : Etec Systems moving up -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (1002)	6/21/1998 1:40:00 AM
From: Ian@SI	Read Replies (1) \| Respond to of 1279

Carl, I hope you're absolutely correct about the market believing that UTEK will take substantial business from ETEC. Yes, it's earnings are near nil. Thus any ratio which uses E as the divisor will probably make UTEK look like a darling. UTEK had more than $7 / share cash until the ISI purchase. I don't know what remains. I've seen estimates that they got ISI for as little as $3M or as high as $25M. So they still probably have about $6-$7 a share cash. As photolithography represents about 35% of the equipment business, and there are only 5 competitors globally, it makes sense to me that those participants would be regarded well by the Street. UTEK has other leading edge technology which would be accorded some value as well: The PGILD product from Verdant sub should contribute substantial revenues as the industry migrates to feature sizes below .20æm. With ISI came the SCALPEL technology. ...and there are high hopes for the Ultrabeam product. For the distant future (as in, possibly never), is the EUV research consortium UTEK is establishing (USA Lithography). But not to worry, I suspect that we'll see lower prices for both companies before the "bottom" is reached. There's still too many people talking about their entry prices. This industry isn't hated enough yet to think that we're close to a bottom. FWIW, Ian. P.S. Congratulations on snagging Post # 1000

To: Carl R. who wrote (1002)	6/21/1998 9:28:00 AM
From: Dr. Bob	Read Replies (1) \| Respond to of 1279

Carl, I think there's even more strength to UTEK's future than taking market share away from ETEC, even over and above the issues that Ian pointed out, and that has to do with their tools for the disk drive industry. In this sector, they have as commanding a market share as ETEC has in mask-making equipment. Since the bottom has already been called for the disk drive sector, I think some people are expecting that business to rise from the ashes and for UTEK to beat current estimates - at least that's what I attribute their surprising strength to. I do agree with you that they are well-liked on the Street, largely, I think, because Art Z. is highly regarded. Bob