Shares in DuPont Photomasks Inc., which makes glass plates used for microchip production, went up more than 8% in late-morning trade on 9 July 2003 after Merrill Lynch removed its “sell” recommendatio…
Shares in DuPont Photomasks Inc., which makes glass plates used for microchip production, went up more than 8% in late-morning trade on 9 July 2003 after Merrill Lynch removed its “sell” recommendation on the stock. Merrill Lynch said DuPont Photomasks “is particularly leveraged” in the market for premium, more expensive photomasks, and has reduced concerns over its cash balance by selling USD 125 million in convertible subordinated notes. Merrill analyst Brett Hodess said that the firm could not yet recommend the stock, in part because of uncertainty over the company“s leadership. DuPont, which now has a “neutral” rating from Merrill Lynch, replaced its CEO with a boardmember in June 2003. DuPont Photomasks shares fell sharply in the middle of 2002 as spending on chipmaking equipment dipped, and investors accepted that there was little prospect on a late-year recovery. The semiconductor industry remains in its worst-ever downturn. The shares rose USD 1.70, or 8.2%, to USD 22.45 on Nasdaq, about the same level as in early June, before the stock dropped to as low as USD 18.47.