Kirk, As you know, I have followed LRCX for a long time. It has always been part of the Group. IMO it is a stock that has been continually under evaluated to the tune of 10 to 30 dollars a share or more. It just doesn't get any respect.:)
Why is this? I don't know and don't understand it. This is a little pictorial of LRCX action for the past year.
LRCX has been falling "like a rock" since last July, and as you noted, another 4 percent in the last 4 days. LRCX has a next year PE of 9 and a PEG of 0.59, yet it went down 4 percent.
Message 24426949
Here is another very recent input on LRCX, dated this past Monday, 3/17.
<<ValuEngine Upgrades Lam Research, Terex, Petrochina To A '5' Rating
March 17, 2008 (FinancialWire) (Investrend Research Syndicate) ValuEngine, Inc. (http://www.valuengine.com) upgraded five companies, including Lam Research Corp (NASDAQ:LRCX), Terex Cp (NYSE:TEX), Cia Energetica De Minas Gerais C (NYSE:CIG), and Petrochina Co Ltd (NYSE:PTR), to a "5" rating, the service's highest.
The ValuEngine Rating is an overall assessment of a stock's attractiveness. It combines the following five factors: ValuEngine's proprietary valuation, risk-return tradeoff, momentum, market capitalization and ValuEngine's proprietary forecasted one-month return.
Also upgraded to a "5" rating was Cnooc Ltd (NYSE: CEO).
Approximately 80 to 85 companies achieve this highest ValuEngine rating out of VE's total coverage of over 5,000 publicly traded companies. These ratings are computed daily and are often discussed on financial broadcasts on General Electric (NYSE: GE) unit CNBC, Fox's (NYSE: FOX) Fox News Channel, Bloomberg TV, and AOL Time Warner (NYSE: AOL) unit CNNfn by leading market forecasters such as Richard Suttmeier.>>
new.quote.com
Now even with all this good news, LRCX keeps dropping in price. One of these days it will turn around, but how far will it appreciate from the present value. Based on past performance over the past several years, it may never be a "high flyer" like WFR. Note that in the table cited above, WFR earnings estimate is 5.23 and LRCX is 4.19. WFR price is 81.05 and LRCX price is 38.60.
Don |
