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Technology Stocks : Silicon Valley Group -- Ignore unavailable to you. Want to Upgrade?

To: David Aegis who wrote (1905)	12/11/1998 5:22:00 PM
From: Juniper	Read Replies (1) \| Respond to of 2946

Yet another article, this time on SVG's EUV development ahead of SIA schedule: semibiznews.com Very cool, yet I have the feeling that most all the EUV announcements are designed as political maneuvers. Everyone seems to be vying for advantage position with Intel's EUV consortium. SVG wants to appear strong since it could help to keep foreign companies out. ASML has recently joined a European alliance, which perhaps threatens the US with losing a dominant position in EUV, particularly in first right supplies to US chip makers(assuming the Europeans can develop EUV themselves). It's fascinating to me to watch the opposing political forces in action - a desire to avoid criticism for giving away tax payer funded technology, domestic chip maker protectionism vs domestic semi-equip protectionism - I think Intel, mot, etc, win here- yet I also remember that lithography has been funded by the department of defense (I assume as a strategic necessity to have domestic semi-equip supply).

To: David Aegis who wrote (1905)	12/27/1998 7:11:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 2946

Here's an interesting story... Do we take it at face value? ... that Scott will buy once he sees the earnings; or that he, like Marty Whitman, has already loaded up on the stock? biz.yahoo.com ... Black, president of Boston's Delphi Management, looks for returns on equity of 15 percent or more. He also favors cash generating companies with solid balance sheets. ... He also likes costume jewelry retailer Claire's Stores Inc. (NYSE:CLE - news) and is watching the shares of Silicon Valley Group Inc. (Nasdaq:SVGI - news), a semiconductor equipment maker. Black said Silicon Valley had suffered from the cyclical nature of the business and slack demand from Asia. He was not yet ready to buy the stock. My question is answered with the following extract from the original story in the NY Times.. With an overall P/E ratio of just 14, based on anticipated 1999 earnings, the stocks in Delphi Management's accounts have some of the lowest valuations in the small-cap universe. "We're absolute value players, not relative value," he said. Yet, unlike many value managers, he does not shrug off technology companies. "At times we'll own tech, but they have to be down and out, selling at close to book value with a prospect of rebound for their earnings," he said. Often, that means drawing a bead on a beaten-down target and waiting for an improvement in the earnings outlook. Black is now watching Silicon Valley Group, a semiconductor equipment maker, which closed at $10.75 a share on Thursday, down from its 52-week high of $27.875 because of the cyclical nature of the business as well as slack demand in Asia. Its book value is $17, but he is not yet ready to buy. "There's more bloodletting to come, because the earnings power hasn't come back on," he said.