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Technology Stocks : Credence (CMOS): Anyone out there -- Ignore unavailable to you. Want to Upgrade?

To: Jack who wrote (374)	5/19/1999 11:54:00 PM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 497

The last posts on this thread were in the month of December 1998. Looks like everyone has lost interest in the stock. I am still interested - I bought some quite awhile ago and have been "underwater" for most of the period, but now I am back in the black. I'm wondering how much further it can go. CMOS announced earnings prior to the market opening yesterday. I guess the market liked the report since the last 2 days have shown some good gains. To kick things off, lets review some of the highlights since the stock started showing some life on 3/9/99. I don't claim to have all the announcements since that date, but I have a few. The first announcement was as follows on 3/9 - it caused a one day gain of 15 percent. "CS First Boston analyst Elliott Rogers raised his investment rating on CREDENCE SYSTEMS CORP to buy from hold on Tuesday. Set price target between $30 and $40 a share. No further details were immediately available. (Reuters 09:33 AM ET 03/09/99)" The next 2 items I noted were as follows on 4/20 and 4/21 - they caused a gain of 12 percent. "S G Cowan upgraded CMOS from a buy to a strong buy. (4/20/99)" "DLJ upgraded CMOS from market perform to buy. (4/21/99)" Then yesterday morning, the following earnings announcement was released. Yesterday the stock was up 13 percent and the 2 day gain at closing today was 15 percent. The target price set in March was between $30 and $40. Since the stock closed at $31.50 today, what is the prognosis on further gain? Are we going to $40? "CREDENCE SYSTEMS CORP reported 2Q EPS loss of ($0.25) vs $0.40 in the prior year period, on revenues of $38.1 mln vs $74.7 mln. Analysts' mean estimates were for a loss of ($0.23), according to First Call. NOTE: Operations for the three and six month fiscal periods ended April 30, 1999 included a pre-tax charge of approximately $6.2 mln related to the disposal of excess facilities and severance. In addition, during the three and six month fiscal periods ended April 30, 1999 the Company recorded a pre-tax extraordinary gain of $1.8 mln for the retirement of $9.0 mln of its convertible subordinated notes in exchange for 328,000 shares of the company's common stock held in its treasury. (Reuters 07:44 AM ET 05/18/99)"