DRC,
I really do not focus on specific details of companies. I like semiconductor sector as a whole, and I invest in several companies whose stock have been beaten down but they have sound infrastrustures
to be innovative and remain a player. I think as long as a company has
a good R&D and its sole objective is not to just run up the stock price in the short term, it is a good place to invest in. As you said any technology can get outdated, but the company can move to a new technology if it objective is to remain a long term innovative company. After all, Intel's technology from 5 years ago is not good today, but intel has moved to new products.
As for your forecasting of future earnings, in my opinion, you need to have information about the cost structure of the company as well as their revenew figues, which both are proprietary not known in advance.
Nevertheless, I am curious to know what method you are using
Taby |
