Mish, CATS, SEMI and NMSS are indeed value plays, and I mentioned those here earlier this month, but you must remember that if the current malaise continues or even conditions deteriorate, the PE is closer to 10 or more than that. I think that the tree are going to be "safe bets" longer term. Buying range for CATS is probably around $3 to $3.5, for semi, $5 to $6 (I was going to buy at $6 early this months, but decided to wait until I see if the 2078 holds, it has not so I am still waiting). NMSS, actually broke to a new low, so I would wait for a base formation there. In all cases, if you buy early, I would suggest a stop loss just under the year's low, since if breached, it could get worse (like NMSS). You also must take into account that these are not widely followed stock, so momentum may not develop in these as much as in the larger semis and other "visible" high techs.
Zeev |
