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Technology Stocks : IDTI - an IC Play on Growth Markets
IDTI 48.990.0%Mar 29 5:00 PM EST

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To: Jane4IceCream who wrote (11020)11/30/2000 1:36:08 PM
From: Rob S.  Read Replies (1) of 11555
 
Thanks!

This market will test investors discipline. Just as it is not good to fall in love with a stock or a sector, it doesn't pay to panic and follow the mob mentality when they are selling. Valuations of stocks tend to hinge around what is normal for it and the sector based on those still valid old world metrics such as sales and earnings. An important thing to watch in this situation of industry softness is the company's margins. This says a lot about the overall health of the business: is it a buyer's or a seller's market for their products. A commodity product company can see rapid declines of margins when their business decelerates or declines. A company with a heavy mix of specialty and proprietary products will be able to hold their margins. Things may be changing, but IDTI said during the latest cc that margins are improving.
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