RE: where to go next.
You might want to look at the high-speed communications area. Great growth there. I'm in JDSU, SDLI, PMCS, AMCC, EMLX, ANAD and CSCO.
The market doesn't seem too displeased with this purchase of ETEC. Yes, AMAT is down ~4%, but that's no more than it's moved each of the past six days.
On the subject of narrow market breadth -- I think it has two causes, neither of which is an indication of a correction. 1) fund managers like liquidity. 2) lots of individual investors (like me) want to own the one leader in a sector.
Look at the popularity of the Gorillas & Kings board here on Silicon Investor. The leader gets a huge PE for its stock, and is then able to use that currency to buy whatever it needs -- market share, intellectual property, capacity, whatever.
But how is that any indication of a market top? Rather, it's a feature of our economy. It's tough for the little guy to make it. The big guys hold all the cards. And big companies have learned to act like small companies. (not all of them, for sure.) |
