Kulicke and Soffa Message Board

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Technology Stocks : Kulicke and Soffa

KLIC 37.04

-1.4%

9:46 AM EST

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From: scott_jiminez	7/23/2000 8:37:42 AM
	Read Replies (1) of 5482

Klic must be the Rodney Dangerfield of the equipment stocks. Donald Wennerstrom (where ya been guy?) has returned, now on the LRCX thread with the carnage... Message 14091558 And now for a course in basic logic: A company has a projected PE that is probably the lowest among a group of 33 of it's peers and is less than 1/2 the group average. The sum of its projected earnings for this year and next are nearly three times the group average. It is precisely these type of earnings expectations that will cause a stock to perform 3rd worst in this group during a week when ALL of these expectations were increased. Message 14091583 [The actual numbers for Klic or even more extreme: next years estimated PE is 7.9 (not 9.0) and the sum of FY2000 and FY2001 earnings estimates is $9.90 (not $9.01). See yesterdays link to Crystal's post on the Yahoo thread] We've got a inverted dot-com phenomenon here. Just like everyone knew the internet looking glass would shatter at some point, the same applies, in reverse, to granting a reasonable valuation to Klic. I am completely clueless as to why Klic is singled out like this - a situation that has been present for at least 9 months - and is not related to the recent CC - but it would appear to be an anomaly that simply can't be sustained. Ridiculously low valuations are eventually corrected by Mr. Market just like those off the top end. Yeah, I know. Wishful thinking. However, the dot-com anomaly did last well beyond the realization that the valuations were silly. It was a self-perpetuating thing that eventually collapsed. We really do have the mirror-image situation with Klic.

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