Semi-Equips - Buy when BLOOD is running in the streets! Message Board

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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!

LRCX 139.60

-6.2%

Nov 20 3:59 PM EST

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To: Coolwire who wrote (8146)	11/14/1999 6:17:00 PM
From: EACarl	Read Replies (1) of 10921

RE "The New York Times article says that AMAT with sales of $4 billion has a market value of 10 times that figure today. In previous cycles this ratio has rarely traded higher than 2 times sales." While it is true that many semi-equip stocks are selling at extreme multiples of price/sales, (even price/future sales), price/future earnings etc, and AMAT is certainly among these, there are some that are very modestly valued such as COHU at about 3 times current sales and only 11 times next years earnings. I agree it is time to examine holdings in this sector very carefully and be careful not to overpay or to hold past sky high valuations. Look at KLAC at almost 50 times next years earnings, or PRIA, or HELX at 11 times sales, that's nosebleed territory. But, There are still good values in the sector, and it may be time to do some rotations within the sector. KLIC was undervalued, and has made a good run lately to catch up (to some extent anyway). COHU is still the best value in the sector. It is not too small a company, yet hardly anyone covers it.

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