Semi Equipment Analysis Message Board

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Technology Stocks : Semi Equipment Analysis

SOXX 299.81

+2.7%

4:00 PM EST

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To: Return to Sender who wrote (11488)	9/8/2003 11:55:30 AM
From: BWAC	Read Replies (2) of 95611

RTS <stock can trade at 27x peak cycle earnings.> Read that statement again. 27 X peak cycle earnings? Or $55. What if the "upgrade" was worded "100X Average yearly earnings over a 5 year cycle"? Would that be a proper valuation? Its more than likely going to achieve the same end result target price. CYMI peak earnings will almost surely be $2 at the top of the cycle. Just as by the time the cycle goes boom to bust the average yearly will be somewhere around 50 cents. So the great buy at 27X Peak equals 100X Average. Is this smart investing? Is this sound advice from the broker? Would even a 27PE on average earnings be sound investing? That would be a $15 target price. Far away from the $55. But of course, earnings do not matter in this mark-it. Neither up nor down. Earnings don't matter, basic financial fundamentals don't matter, sound financial advice is nonexistant. May as well just head for Vegas, they don't charge you a commission to roll the dice, and you get free meals, drinks, and board if you gamble as much $$$ as we probably all trade on a day.

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