Saw in the Dallas paper today that Ford was going to make a bid for Kia Motors, foreign banks may go after Korean jettsom, Korean market rallied based on IMF infusions. Korea may be "shut down", but things will work themselves out in the semiconductor area as well (unless Japan tanks).
Two things can happen to undevalued companies like FSII. Either the fair market value is eventially recognized, or they are taken over by stronger players in the industry. Saw even the analyst who downgraded FSII recently (forgot which firm) has a 12 month target price of $15. Downside limited here, upside exists (but not in the near term IMO).
While the book to bill is down for November to 0.99, articles in Barron's, Business Week, and the Los Angeles times are positive on the semi equipment sector - at least for bottomfishers who look for value oriented growth potential. Here's a short summary of the articles for anyone with any interest: members.aol.com -
Wish things looked better short term for the sector, but then again the reason everything is so cheap is the uncertain outlook. Longer term the trend toward more electronics in industrial, commerical, and residential markets will continue, and miniturization and competition will require upgraded equipment - so this is a buyer's opportunity - regardless of what happens in Asia short term..
Thanks for the info TaffyII, interesting takes on what is going on. Wish I could say that I thought FSII will go to $20 in the next six months. Analysts still have 1 strong buy, 6 buys, and 2 holds on the company according to Zack's - so they still like the company's positioning - and those that have a hold from what I've read really have concerns about the market and not the management or products here. Then again most analysts are lacking in their objectivity, and many times their understanding of technology based companies is not impressive IMO.
Best - Joe |
