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Technology Stocks : TNCR, the MOST Undervalued Semi-Equipment Stock

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To: Max Vasquez who wrote (230)6/12/1996 9:30:00 PM
From: Getrich Won   of 362
 
Looks like some fund managers are buying this Baby.

When I said TNCR was a "Best Buy" several days ago, I hope you have bought some at that time instead of doubting their products.

I had said that this market is controlled by psychology; and it seems to me that you had interpret the drop in share price as if the company will fail (report -ve earnings??!). ( You have shown your fear. ) Sometimes that might be the case..but in this case, it's the negative sentiments of the whole semi-equip industry which sure fools you and other small investors. The stock was at a point of OVERSOLD at 19. People were selling at a lost. They just want to get rid of their positions.

But be realistic. For the last eight quarters, Tencor had made a total of $3.56/share (addition to their book value). Without counting future earnings, at price of $19, you are only paying less than $16/share extra. If you are a long term investor, you will get back all your money in 8 years (assuming their earnings are $2/share/yr). But just check out Value Line, their projected earnings are >$3.00/share/yr. In that case, you'll get back all your money in less than 8 years (just looking at book value). Eventhough Semi-conductor manufacturing is slowing down, that does not mean that the industry is disappearing. You think the stock will go to $10 bucks. Wall Street people wish you think that and dump the stock so that they can buy more and more of this "Babe".

I am not trying to sell anything here, I'm not a broker. I just want to speak out because I felt there're some type of market manipulation going on around here, especially with this stock.

Wall Street people sure knows how psychology works. They forces the prices to free fall first so that small investors cannot and would not hold on to their shares. At the same time, acquiring shares at low price. These people are buying the shares that small investors had sold and thus driving the prices up so high that small investors would have to pay a higher price to buy them back. All Psychology and it's just a game.

Anyway, be smart, slow down does not mean the company is going bankrupt. I really hope you're not one of those investor who gave away your shares to the money manager.

Happy Investing and Best Wishes to all Tencor shareholders (past or present).
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