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Technology Stocks : Semi Equipment Analysis
SOXX 342.47+1.6%Jan 16 4:00 PM EST

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To: auriculatus who wrote (29154)3/8/2006 5:28:13 PM
From: Donald Wennerstrom  Read Replies (1) of 95737
 
It IS a tough one to figure out.

<<This group is the most illogical one out there.>>

This has been such a cyclical industry in the past, the analysts are all trying to "guess" when the bottom is going to fall out again. Since they are trying to look out many months, and even years, their prognostications mean essentially nothing. However, the people who don't have a chance to study the market every day take their word at face value and make the market "move".

To know that the analysts are just guessing at next years results lets look at one example taken from,

nasdaq.com

AMAT has 12 month price target estimates from 14 to 35 - that's over a 2 to 1 ratio. Other semi-equip companies show the same type of price target spreads.

If the analysts can't make up their mind, how can we mere mortals expect to figure it out?:)

Don
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