Again, from Briefing.com today. Jeff
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15:42 ET ******
Chip Equipment Sector : The next couple of weeks should tell the story for the chip equipment group... Despite near universal expectations for strong Q2 sales and earnings numbers, the group has labored over the past couple of months, with most of the component issues trading well off their respective 52-wk highs... Why the weakness? Maybe Salomon was right - at least that's what the market seems to be telling us... Weakness in the group in the face of tremendous earnings growth suggests that many large investors, fearing an end to the industry upturn within the next six months, are booking profits... Basically, if you wait for clear evidence that the industry has rolled over you'll have waited too long to get out at a good price... Of course if the skeptics are wrong and company after company gives bullish guidance for the next several quarters, then the current pullback provides a very good (re)entry opportunity for growth oriented investors... With a slew of chip equipment companies holding analysts meetings next week (see our Events Calendar), followed by an avalanche of earnings reports over the next 14 days, investors won't have to wait long to know how to act... Our bet is that the stocks will get a nice run over the next few weeks, jumping as much as 15%-20%... However, few will set new highs and big investors will continue to sell into strength on fears that tough comparison periods and slower economic growth mean the industry upturn is very near its end. -- Robert Walberg, Briefing.com |
