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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: sammaster who wrote (19679)	9/20/1998 12:34:00 PM
From: orkrious	Read Replies (1) \| Respond to of 25960

Sanmaster, the reason Cymi is selling at a premium to its peers is not because it is overvalued. It's because the market recognizes that Cymer has a near monopoly on a piece of semi manufacturing in the future (it essentially is a toll collector) and is essentially a slam dunk. As Warren Buffett would say, he can't tell you when, only if, and the answer to if is yes. You can't say this about Cymi's peers. Jay

To: sammaster who wrote (19679)	9/20/1998 9:59:00 PM
From: ben luong	Read Replies (2) \| Respond to of 25960

About CYMI's book value and its fundamentals: Those of you who repeatly stated CYMI is overvalued based on its book value compared to its peers in semi equipment industry may want to consider the following arguments: CYMI went IPO on September 19, 1996, 2 years and 1 day from today. Young company such as CYMI won't have much retained earnings to contribute to their stockholder's equity. Much of the equity came from the proceeds of IPO at an adjusted price of $4.75 post-split, a secondary offering at a price of $21.0 on December 12, 1996, and qrarterly retained earnings since 1996. (CYMI was in red in 1993 and 1994 and trivial earning of $69000 in 1995.) Companies such as AMAT, KLIC, and KLAC have gone public for more than 7 years. Their retained earnings added up so are their stock price (as evidenced by their stock price in 1991 and now). CYMI's revenue has gone from $18,820,000 in 1995 to $203,647,000 in 1997, a 10 fold increase (1082%). Yearly earnings from $6,510,000 in 1996 to $26,058,000 in 1997, (400%). Yet its stock price is $10 now as compared to its IPO of $4.75 2 years ago. Nobody knows how much CYMI can make when the industry recovers. In less than 2 years, revenues increase 10 folds and this is only the beginning of industry's adaption to DUV. What about revenues from services and parts that added to the laser sales in the future? Potential competitors will not be much of an issue since the market is big enough where each competitor can still make tons of money. In addition, the barrier to entry is high.