Hi Jason, first of all let me say that this is great article.

Your comment about the lack of innovation hits the bull eye. I can see exactly what you described in the industry in general and especially in my own sector, semiconductors. All semiconductors manufacturers are expecting the EUV technology to be ready for production since 2012. Nevertheless, the technology is not fully prepared and there are some challenges ahead to be solved. My question is, looking at the ASML financial position, with 2400 MEUR in cash and cash equivalent and 1400 MEUR in property, plant and equipment; with a total liabilities/total assets ratio of 0.37 and a clear dominant position on the market, what is stopping the company to take the risk and bet everything on one (and the only possible) card?

One of the answers that come to my mind is that the market is to the money what the society is to a democracy: in an ideal case, a well-educated mass of shareholders and investors will understand the dimensions of the challenges and the amounts of capital needed to solve them and will be consequent with their votes and decisions. But the reality is that the investors are scared and short term minded, and the public companies only can wish to secure a small part of their budgets to the new adventures if they don´t want to see their equity evaporating.

Carlos V.