An interesting article in the latest issue of Business Week (jan 12th page 88)
All the negatives of the Asian flu (BW now calls it the Asian disease) and how the Semi eqp mfg's stocks have been trashed. Now comes some more positive comments. Many high- tech execs say Wall Street has overreacted to the Asian mess. James Morgan (ceo Applied Materials), figures his sales might get nicked 5% if Korea slashes spending on chipmaking equipment in HALF, a retrenchment he considers overly pessimistic.
Why I think this relates to Fsii, is, Wall Street has overreacted on Fsii. As we all know Fsii has come out and said, Yes Asia is a problem for us (and every other,cos in this Sector) , because it will stop us from making our 600Mil revenue goal, until Asia improves. Wall Steet has taken Fsii almost to Book Value ($9.93 ps), at current stock price @ 11.50, this stock is a screaming Buy/ Hold. On top of that we have a excellent take over candidate, which should be worth at least 2 1/2 times book. So whats the Risk? Sure parking your $ in a stock that has faster growth potential, like Lucent @ $80.00ps.
I don't like to Hype or appear egotistical but I made a $97,000 profit (not paper) on Fsii in 97 and I'll do it again in 98 or 99, I don't care which.
Happy New Year to all
TaffyII |
