On Cramer, he keeps saying to sell the AMATs and KLAC's on this news.
He is a long term holder of Intel but says get out of tech for the summer, from what I can gather from his gyrations. How many listen to him or how many think like him?
Notice what else Cramer said:
He said HP, IBM, Dell not doing so good because there are other PC companies in the world that we have not even heard of. So basically Intel sells to everybody and as other markets develop, they still have to buy chips from Intel. Therefore be bullish on Intel only. Sounds reasonable.
However, if he uses that logic, then one should be bullish on AMAT, NVLS,KLAC,ASML etc..
Why? These equipment supplies are the principle suppliers worldwide and I don't think there is any big chinese player out there to compete against. It is much easier to start a new PC company than a semi equipment biz.
Therefore, my thinking would be that the Intel bullish case should also apply to at least the semi equipment companies. There is enough bearishness on this group.
We should get at least a 10% rally near term in this group, imho.
If anyone can find errors in my logic, I would like to know. |
