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Technology Stocks : C-Cube
CUBE 37.23-0.3%Nov 28 9:30 AM EST

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To: Kibby who wrote (13227)4/10/1997 6:01:00 PM
From: Smart Investor   of 50808
 
Hi, there is no need to get personal and talk about who is stupid. I have been right so far regarding my evaluation of many semi stocks. Before the downturn last year, a lot people were shouting that semi cycle was the thing of past and we will not have up and down any more. Look at what happend last year. Then as soon as we get into the down cycle, some people started shouting it is bottomed out. Guess what, the semi industry is still cyclic and we are still in a down cycle. How can a semi company in a cyclic industry command a trailing PE of 50-60 and a forward PE of 25-30 as many of semi stocks are priced recently ? It has to go down to more reasonable level. The semi group largely avoided the recent correction, it is time for it to go thorugh the correction before going any higher.
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