Sundar:
This Fleckinstein - he is a short seller. He has his motives for constantly saying what he does - Profits.
1. He goes on CNBC often to talk about the demise of the chip sector.
2. I do not know if he owns a computer; if he did, he could see computers, technology, chips are an integral part of the world. I can think of no growing company that can survive without a computer somewhere in organization.
3. As long as we have growth in the world, there will be growth in the computer technology sector. Semiconductors & their cycles may come & slow down, but they will grow. Everyone upgrades. More dram, sdram, edo dram required. An average computer user will buy more when it is less expensive.
4. Microprocessors - faster & more efficient - requirement for the future.
5. The extent to which these companies will see a slowdown is not a know factor. Everyone can guess. Each analyst, short seller, etc. can have an opinion based on facts. Are their facts factual. Are their opinions biased.
I currently own no semiconductor stocks, but I do on occasion. Intel, AMD, semiconductor equipment makers, - I do not pretend to know the bottom of a cycle, or growth in future.
6. I cannot imagine a future without computers, semiconductors, the Internet, and communication, data transfers at the click of a key. Thousands of investors were abused Friday at the whim/words that were semi-accurate. I was busy buying GE as it was being thrown away; that is only reason I did not buy Intel when it was in $78-79. range.
The underlying value of a stock is recognized eventually and the stock goes back up. There may be more downside. But, today is not the end of technology, nor will it be tomorrow. |
