joby;
I have XLTC, SFLX, KEI, XICO, ASEC, and QSYS on the short list. However, I am only looking at XLTC and ASEC seriously. The others have one shortcoming or other which needs to be worked out before I would become comfortable owning the company. With the exception of SL and SUG, I have looked at all of the these at one time or other and passed on. Quarter to quarter, the short list changes, so depending on valuation and certain technical indicators, it is difficult to say what goes into the portfolio. I am presently searching for value in the SMT area and test equip for telecommunications and semis. I have some SRAM holdings which I will run with until price momentum dies. I have a long term holding in NZYM. I prefer companies with recent earnings momentum and room for PE expansion...a double whammy for price appreciation. I hardly ever chase after a stock, but prefer a special situation such as APM, WDC, or ICN. I simply wait until my price momentum indicators begin to reverse and hopefully, be able to play a short squeeze. Picked these up at their recent bottom, but haven't decided on how long to hold...depends on the fundamentals.
It is a very unusual market, quite frankly, but then so is the economic climate. It is strange to hear the weakest post-war expansion described, continually, as a boom. Annualized growth for the last quarter is 2.2%(unrevised). Zero inflation, low unemployment, but very high household debt, and the unexplained discrepancy between GDP and national income. Interesting article in Barron's about disinflation, deflation, and what may be lurking on the horizon. Now we will have to wait and see what new dynamic is presented with the cut in cap gains taxes...
We are living in interesting times. Good luck. Let me know if you have any ideas for SMT.
patrick |
