Semi Equipment Analysis Message Board

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Technology Stocks : Semi Equipment Analysis

SOXX 299.81

+2.7%

Dec 19 4:00 PM EST

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To: Pam who wrote (41943)	12/2/2008 11:40:10 AM
From: EACarl	2 Recommendations Read Replies (1) of 95616

RE "Earnings/share determine the stock price" Strange that I don't see companies with losses trading at zero. ;-) Point is obviously that EPS has nothing to do with stock prices once there aren't earnings. What to use then? Historical trough price to sales ratios? Net tangible equity? Net working capital? Net cash?! Estimated future recovery earnings? Some of these stocks already trade for less than the liquidation value even after taking into account future losses. It's all about psychology. At some point there will be more investors willing to look past the downturn and toward the recovery. At that point the stocks will rise. Will they anticipate by 6 months, 9 months, 1 year? I think it depends on how low we go. The lower we go the sooner the stocks will anticipate because the start of the rise will come from value players, then as the change in trend is seen others will join in regardless of what point in time the recovery is supposed to begin.

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