I read Cymers latest 10Q. Amoung all of the other risks unique to this company they listed their competition. Komatsu and Lambda Physiks. Lamda Physiks is 80% owned by Coherent. Coherent is the top laser manufacturer in virtually every market in the world (Medical, diagnostic equipment, R&D, Industrial manufacturing and semiconductor equipment). Lambda Physiks (according to their 10K) is the world leader in excimer lasers. They recently expanded their facilities in order to meet growing demand for excimer lasers by semidonductor equipment companies.
Why would any company in the Lithography business buy a laser from Cymer a company with no production experience, a minimal support staff, little history, and lack of enough personnel when you can buy a laser from Coherent with a 25 year record, support personnel worldwide, and arguable (according to COHR) a better product? Amoung CYMI's stated risks in their 10Q is that they can find only one supplier for critical components like pre-ionization tubes and optics. Coherent doesn't have this problem, they make the worlds best excimer laser pre-ionization tubes and optics in-house.
More to the point why would anyone buy CYMI stock with no earnings history, little sales (yes it is growing), and at an outragous price.
Coherent has a P/E of 16 with 50% earning growth last year. CYMI has only ONE product. With COHR you get a company with growing medical, industrial, R&D, and Semiconductor related laser sales growth; They sell more excimer laser sales to Semi Equip companies than CYMI, and have a lower market Cap to boot. Check out the CYMI 10Q and compare it to COHR 10K. I would buy COHR and short CYMI but, with all the hype surrounding CYMI I'm probably better off in the short run to just buy twice as much COHR.
Check out the Coherent thread and their 10K and compare it to Cymer's 10Q before you put to much faith (money) into an over hyped company with only one good product.
Mike |
