SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Applied Materials No-Politics Thread (AMAT)
AMAT 318.63-3.0%Feb 3 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Return to Sender who wrote (17449)1/25/2006 12:28:12 PM
From: Cary Salsberg  Read Replies (3) of 25522
 
RE: "Are the stocks in this industry still treated as cyclical? Yes, I believe they are."

The operative word is "treated". I agree that these stocks are "treated" as cyclical by the market. Of course, the meaning of "cyclical" is not the same as it meant in the past and it is continuously morphing to fit the hardly cyclical behavior of the industry.

You always fall back to the cyclical nature of the business cycle and its effect on stock prices, particularly the prices of cyclical companies. We agree that there are business cycles and on the resulting volatility of cyclical companies.

Capital equipment companies are typically cyclical and volatile. Semi-equip companies are capital equipment and cyclical growth companies and will be affected by a significant worldwide business downturn. The stocks are not "treated" by the market according to this definition of cyclical. The definition the market wants to use and is still using is based on the historical cyclical behavior caused by the semi industry's inefficient modus for capital acquisition. I contend that the industry has changed for a variety of reasons which have been discussed and that procurement since the bubble has been very efficient and will continue to be efficient. Consequently, much of the market behavior with respect to semis and semi equips are based on an erroneous view of cycles and is mistaken.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News