Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : SEMITOOL (SMTL):Is it a hold? -- Ignore unavailable to you. Want to Upgrade?

To: Running Bull who wrote (700)	7/14/1998 5:52:00 PM
From: Q.	Respond to of 973

Running Bull, SMTL's moment in the copper sun seems to have passed. I imagine they will still sell some tools, but you would think that customers will flock to AMAT and NVLS with their complete solutions. I wonder if a decent analogy would be AGAI, which used to own the RTP sector when it was new. Then AMAT entered with a better, and more expensive, RTP tool. Intel immediately switched to AMAT as its supplier. I sold my AGAI on this news, and that was fortunate because the stock continued to slide for a long time thereafter. At least one flaw in the analogy: SMTL still has its other stuff, the washers and driers and so forth, whereas AGAI was truly a pure play.

To: Running Bull who wrote (700)	7/14/1998 8:06:00 PM
From: geoffrey Wren	Respond to of 973

"The race goes not to the swiftest, nor the match to the strongest, but chance happeneth to them all." Ecclesiastes was also commenting on semi-equipment companies apparently. Timing accounts for a lot, and a lot is luck, especially for small companies. But at these prices Semitool is not too bad on a value basis (PSR ratio is .6, and PE is 10), and who knows there still has to be some potential for them to get good sales with their copper works down the road, even if third banana. I'll hang on for now. Suppose there could be a merger? I wish there were some consolidation going on. Geoff Wren

To: Running Bull who wrote (700)	7/14/1998 10:11:00 PM
From: SemiBull	Read Replies (1) \| Respond to of 973

Running Bull, I believe the AMD announcement regarding the utilization of AMAT's copper tool is a win for SMTL's electroplating Cu tool. It is my understanding that AMAT doesn't "really" have one. Further, when the IBM Cu process is mentioned it likely involves SMTL's tool, because once again, they are utilizing SMTL's electroplating tool. The same is true for Motorola. With all that said, what is clear to me is that Kalispell is a long way from Wall Street and Semitool is not a PR driven company. :~) I guess they'll speak with their earnings. While I am never assume anything in this fast paced sector, don't count SMTL out because of NVLS and AMAT per se'. I believe at one point NVLS tried to buy them out...not at a price that CEO Thompson wanted. Now that Thompson has stepped aside anything goes, who knows. Since neither AMAT nor NVLS have as rigorous or robust an electroplating tool as SMTL....'Tool will be either become a great acquisition target once again, or will just have to bring home the bacon and let it speak for itself. Would be nice if they used just a little more PR. :~) Just one man's spin....SemiBull