Tom, First of all, as a group, I believe th semi-equips are very oversold. This is somewhat corroborated by looking at the present PE/G ratios of the group. Only 1 stock, SVGI, presently has a PE/G greater than 1. A lot of very negative sentiment "out there" right now.
I prefer the larger cap stocks in the group, because I think they will recover sooner and are safer than some of the smaller cap stocks. Some names are AMAT, NVLS, KLAC, LRCX and ASML.
Over the long term, once the new "up cycle" is in place, most of the stocks in the group should do very well. Over the short term, who knows? - certainly not I.<gg> As an example, just look at CYMI the last 8 trading days. On Tuesday, 1/30, the stock closed at 35.25. Today, just 8 trading days later, the stock closed at 25.38. That's a loss of 28 percent. As you can see from the table this week, next year earnings is estimated at 2.90, giving a PE of 9 and a PE/G of 0.33. What caused CYMI to behave in this manner? - certainly it should qualify as a "grossly" oversold stock at the moment and is probably going to rebound next week - then again, maybe its not finished with its self destruction yet?<gg>
Don |
