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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders
LRCX 159.13-4.4%Nov 11 3:59 PM EST

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To: Pink Minion who wrote (4691)8/2/2001 6:06:49 PM
From: Artslaw  Read Replies (3) of 5867
 
WHAT? Please show me companies going bankrupt selling for .5X sales.

I did a PSR screen of companies between 0.4 and 0.6. A quick scan of the 876 gave some known-name examples, although most would argue that "going bankrupt" does not really apply. This is just for fun.

ASKJ (Ask Jeeves how they can avoid the axe)
AVEA (Avenue A, not through street)
EXDS (Exodus--describes the investors relative to the stock, but might not actually go bankrupt)
GADZ (Gadzooks, I'm poor!)
JWEB (Do Juno how to make money by giving away product? In a good quarter you can NetZero)

Anyway. . .was your point is that PSR of 0.5 is high with regard to bankruptcy, right? Makes sense since the PSR rapidly approaches zero when the company goes bankrupt. However, low PSR's are indicative of low growth in low-margin industries (like restaurants) or dying companies, so when you see your favorite semi going below a PSR of 1, it's a reasonable argument that the price might be a little low.

Personally, I'm in no rush to buy semis. I don't believe Craig Barrett any more than Jerry Sanders when it comes to calling a bottom. I'd like to see some data first--won't cry if I miss the first 25% of the rise.

Steve
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