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Microcap & Penny Stocks : CYCOMM (CYII)-on aquisition trail -- Ignore unavailable to you. Want to Upgrade?

To: DRL who wrote (1715)	4/29/1999 8:53:00 PM
From: Brian Gross	Read Replies (1) \| Respond to of 1800

News from WSJ! Cycomm International Inc. Dow Jones Newswires -- April 28, 1999 TIP SHEET:Red Oak's MacKay Sees Upswing For Chip-Equip Stks NEW YORK (Dow Jones)--Growing demand for smaller and faster chips, as well as an increase in potential uses for them, has boosted the long-term growth prospects for semiconductor-equipment makers. And while shares of chip-equipment makers seem to be treading water recently, the stocks have recovered significantly from "the bottom of a cyclical trough" that was spurred by an oversupply of memory chips and concerns over personal-computer sales, Red Oak Technology Select Stock Fund co-manager Doug MacKay said. This shows in the gains made in shares of chip-equipment makers since Oct. 8, when global and domestic economic worries pushed the Philadelphia chip-sector index to its 12-month low of 189.9. Most of the major chip-equipment makers saw their shares fall to new lows as well, including Applied Materials Inc. (AMAT), Novellus Systems Inc. (NVLS) and Kulicke & Soffa Industries Inc. (KLIC). Yet, improving economic conditions, better pricing on memory chips and moves by semiconductor makers like Intel Corp. (INTC) to produce the smaller, next-generation 0.18 micron chip put demand for chip-making equipment on an upswing. The Philadelphia semiconductor index recently was down 2.99 at 382.82, below its 12-month high of 420.45 set on Jan. 29. Since last fall, most semiconductor capital-equipment stocks have rebounded significantly from their lows. According to the Semiconductor Industry Association's latest forecast, the chip industry is expected to grow 9.1% in 1999, 15.2% in 2000 and 18.2% in 2001. In addition, MacKay projects that chips will be used in just about every appliance. "We can't even anticipate where they are going to be used ... from the washer and dryer all the way down the food chain," he said. This "second industrial revolution," he said, will mean chip makers will have to increase production capacity. "So companies like Applied Materials will be big suppliers and we're investing in it on that basis," he said. As of Feb. 22, about 6% of Red Oak, a long-term growth fund that concentrates on investments in technology and technology-related companies, was invested in Applied Materials. However, MacKay noted that chip-equipment makers like Applied Materials should be considered long-term investments. Traditionally, growing demand for chips does not necessarily mean an instant demand for the equipment that makes them and there is usually some lag time in between. Other companies that remain on MacKay's radar screen in the sector include one industry leader, KLA-Tencor Corp. (KLAC), and niche player Cycomm International Inc. (CYI). MacKay co-manages the Red Oak fund with Jim Oelschlager. According to MacKay, the fund, which is offered by Oak Associated Ltd., of Akron, Ohio, is up 16% year-to-date. -By Nicole Ridgway; 201-938-5174 --------------------------------------------------------------------------------