If the SOX index is still tied to individual semiconductor companies, no matter how small, then as the SOX goes, so goes the individual semiconductors. SSTI is certainly in a sweet spot, but until analysts realize that all semiconductors are no longer created from the same mold, all stocks in the semiconductor industry will feel the pains and gains of the SOX within their own trends. I hope that future analysts get the idea that in an expanding communications industry, the diversity of applications for semiconductors does not lend to sweeping industry commentary, but rahter individual mention. Until then, SSTI, and other strong semiconductor companies, will fall prey to the old school of thinking about the semiconductor industry.
Furthermore, the disparity of valuation that still persists on the street is confusing at best. I need not go into detail about all those I know, but suffice it to say that within the semiconductor industry, how does a RMBS have a bigger market cap than SNDK or SSTI? Where is the logic for BRCM's valuation in addition to PMCS and VTSS? All are fantastic companies, but what's the logic here?(rhetorical questions). All I can do is keep finding the best companies I can and invest. The long term will take care if itself IF the company continues to execute.
JMHO, but I could be wrong,
Miller |
