Rocky, the only way the scenario given by Zeev in the link you posted could happen is if the entire technology sector suffers a major setback, and maybe the entire market as well. With higher interest rates in the offing, and continuing articles in BARRON'S of the sort that appeared on Cisco this week, I can see a possibility of this scenario coming true. It's possible, but not probable. Zeev appears to be relying on technical analysis. I have no problem with TA, except that I do not believe it is a good predictor for more than a month in the future, and even then it is questionable purely on a scientific basis.
I look at the value side of tech stocks. If the value is there, then I'm a buyer. No one could have predicted the decline in SNDK in October, 1998, but it happened. Comparing SNDK to other tech stocks that are profitable and that have intrinsic value from proprietary technology, none of these stocks are very strong at the moment, but, based solely on value measurements, SNDK ranks among the most undervalued, and therefore, among those with the most potential for recovery in the next 6 to 12 months. It may take a favorable patent ruling to trigger the stock price, but eventually the fund managers will see the light.
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