Happy New Year to one of the strongest threads on the web!
I follow the discussion - don't write much, but thought this excerpt might be a good way to start off the New Year.
smartmoney.com
"BARGAIN BASEMENT TECH STOCKS
...Now bargain hunters see some names unduly beaten up by
their association to technology. As Kevin Landis, co-manager
of the Technology Value Fund and of the recently formed
Technology Leaders Fund based in Milpitas, Calif., says,
"Thanks to an extreme amount of skepticism built into prices,
there is nothing but tech bargains out there." Landis is no fool.
He fully recognized that there are legitimate concerns such as
Far East turmoil and plunging profitability in disk drive makers
and certain categories of the semiconductor industry.
Landis is finding value in companies he calls leaders in their
field. "When everything is on sale, buy the best," he says,
adding, "Assemble the portfolio of the strongest companies
and minimize your list selection." Landis notes that sometimes
you'll have to pay up for good companies, but they're worth it.
...
Landis plunged into Applied Materials (AMAT), one of our
favorite stocks. The semiconductor equipment maker has
been battered by fears that Asian customers would slow
purchases, falling from a mid-October high of 54 to a recent
30, or about 15 times 1998's projected profit. Landis thinks
Applied Materials is a terrific company, but "it's a buying
decision that you can't look at for another 12 months..." |
