AMAT is such a beautiful money making vehicle because, for whatever the reasons, the market always responds to it through a series of gross, irrational overreactions that can be exploited by the savvy investor for monster gains.
Take now for example. The stock price has fallen $17 per share in the past week despite an excellent earnings report, and company guidance for even brighter days ahead. Moreover, all this is occurring against the backdrop of an extremely robust semiconductor market in the early stages of a long-term sustainable up cycle.
Oddly, this unwarranted, ignorant, and short-sighted sell-off of equipment stocks has created a situation rarely seen and never sustainable -- namely, a complete divergence in price movement between equipment stocks and their leading indicator chip stocks like INTC and MU. Believe me, my friends, when the the chip maker stocks are justifiably soaring, equipment stocks sure as hell shouldn't be tanking, and won't be for long.
Sure wish I had some money on the sidelines. Buying AMAT at these levels gives you a good shot at a 50% return in the next 3 to 6 months. |
