Neil, look at KEM. PE of 3.52** and just announced RECORD sales and earnings minutes ago. The perfect low PE stock in this environment, imo, to grab now and hold for a while.
(see PR from today below)
** Mytrack says PE is 3.52 (probably forward-looking)
** YHOO, SI say PE of 6 based on TTM (trailing 12 months)
It's kind of like ADPT (beaten way down over the last few months) but even better prospects and even lower PE. Much better than VSH, too, imo.
Smart investors don't need to take big chances that some are still doing by investing primarily in BB's. Just buy the quality names in tech and financial, maybe some energy. Names that have been dragged down. I hope people don't risk on BB names too much because you can make much easier money now in the much safer, surer names. A few select low-priced plays is fine but I sure wouldn't avoid the better-known, quality names here.
Heck, you could have tripled your money in AOL options in the last 24-48 hours!. I "only" doubled my money because I bought the safer, July AOL calls.
Just look at how ELNT ($20 - 34); AOL ($32-42); ADPT ($8 - $11-1/2); FLEX $23-31; etc., etc. have done in the last few days. The list goes on and I think that after we get through earnings warnings we'll really start to build as investors hopes improve. I was very heartened by BMCS's report yesterday. Very good news to see a beaten down tech announce that they exceeded earnings consensus.
Anyway, off my soapbox. I just wanted some newer investors to at least think about diversifying more. I got in the rut of playing BB stocks too long and missed the easier money. Also, many experienced people do really well in the good BB stock names, so this advice is mostly for newbies. And it's just my opinion. Good luck!
HERE's THE KEM PR:
Released about an hour ago: (COMTEX) B: KEMET Expects Record Sales and Earnings for Third Quarter of Fiscal 2001
GREENVILLE, S.C., Jan 4, 2001 /PRNewswire via COMTEX/ -- KEMET Corporation
(NYSE: KEM) announced today that based on preliminary results it expects to
achieve record sales and earnings for the third fiscal quarter ended December
31, 2000. This is consistent with the company's expectations for the quarter
announced in the October 23, 2000, second quarter earnings release. "I am
pleased with KEMET's excellent results for the sixth consecutive quarter,"
stated David E. Maguire, Chairman and CEO. "Concerns over an economic slowdown
have raised questions about our business in the last few months. While we have
experienced some order cancellations, attributable primarily to inventory
adjustments by our customers, we remain positive on the long-term fundamental
growth drivers of the electronics industry in general and our sector in
particular." The company plans to present further details of the third quarter
results in the quarterly earnings release scheduled for January 22, 2001. |
