The advantages of being despised - Klic portrayed favorably on Briefing.com.
An article posted tonight...
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Kulicke & Soffa (KLIC)9 9/16 -5/16: Many investors anticipating the Nasdaq to snap back over next few days now that the index has tested the 2660 area... Briefing.com concurs, as the sector is indeed oversold on a short-term basis... First impulse of many traders is to buy the large-cap momentum stocks which have been crushed in recent days - Brocade (BRCD), Broadcom (BRCM), Corvis (CORV), Ariba (ARBA), BEA Systems (BEAS), Sun Micro (SUNW), Juniper (JNPR), etc.... Indeed these stocks could well rebound over next several sessions... However, excessive valuations and still bearish chart patterns suggest that these stocks will ultimately resume their declines... The better strategy at this point might be to consider those stocks that have already fallen completely out of favor... One example is Kulicke & Soffa (KLIC)... Stock now trading at levels not seen since it was reporting losses a couple of years ago... Though earnings estimates for FY01 and FY02 have been cut drastically in recent weeks and could get trimmed again, at this point the company is expected to post profits of $1.27 and $0.70, respectively... Clearly not a positive trend, but at current prices Briefing.com contends that most of the bad news is priced in... Now consider what happened the last time the chip cycle reversed and KLIC started experiencing improved earnings momentum -- the stock rallied from the 10 area to 43 5/8... So while the stock might not get much of a bounce over the next few weeks, patient investors with a longer-term time horizon might want to consider adding some KLIC as the two-year potential is quite compelling. -- Robert Walberg, Briefing.com
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Thanks to cmprto on the Yahoo thread messages.yahoo.com whose title for a previous post was borrowed for this one. |
