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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 162.77+2.6%3:59 PM EST
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To: Kirk © who wrote (9527)3/13/2001 2:03:19 PM
From: Donald Wennerstrom   of 10921
 
Kirk,

It seems that the time to buy the companies is when they announce layoffs as sentiment is the most negative then (brutal, but that is why people hated Potter for buying when all were selling).

The sentiment is the most negative at that point, but Wall Street loves it when management cuts personnel to improve the bottom line. If the work has disappeared, then it makes sense to cut the personnel to match the amount of work required. However, in addition to the trauma of the laid off personnel, the company incurs one time layoff charges that subtract from the savings - but Wall Street doesn't seem to mind this cost. They want the quarterly earnings to be as large as possible.

I should put this in your thread but my list of subject marks is not working.

I have seen other people on different threads having this problem, but so far, I have not had this problem.

Case in point. AMAT seems to have bottomed after it announced the reduced work week which I think is better than layoffs as most employees have stock options and might work full hours ANYWAY in R&D so they come out stronger in the end.

I agree - it is better to reduce the workweek and minimize the number of employees that have to be terminated.

Don
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