Don, Paul and all,
Enjoy browsing through your many posts, it helps me keep a firm footing on what to expect and when.
Curious about the comments about value stocks. If you consider P/Es of many semi stocks, like AMD, SSTI, VSEA, CMOS, seems many have ratios under 10, maybe 6. Understanding the cycles of the semis is critical, as the typical time to buy is when they all have losses, and sell when they look cheap. Company like SSTI, comes out with earnings and say instead of $2 earnings next year, we will earn $3, yet the stock goes lower on the news.
There are value tech stocks, not just value in other sectors. Look at the airlines, and autos, all with PEs forever stuck below 10. They don't have near the growth or volatility in growth that the techs have.
Many highflyers gave an indication that their run is coming to an end with this week's fall, they have a lot further to go and the technicals look awful, so this has to be a selling rally and time to buy puts soon.
However, the other Semis and Software could lead the techs vs. the opticals, storage, internets, etc.. |
