SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : FSII - The Worst is Over?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Joe Dancy who wrote (2298)11/5/1998 11:28:00 AM
From: Donald Wennerstrom  Read Replies (2) of 2754
 
As noted in this thread previously, the semi-equips have had a torrid run the past three weeks. It remains to be seen how this week will turn out, but so far, through Wednesday, the "bulls and the bears" are about equal.

Even with the runup of the last three weeks, the group average is deeply depressed from the highs of last year. This implies a lot of growth in the group average price is still before us - when that happens is anybody's guess. The runup has been so fast and furious a period of consolidation could easily happen.

The past year has been a painful one for the companies and personnel in the semi-equip business. Cutbacks in facilities and personnel have been the order of the day. To the people involved, it is extremely unpleasant to say the least. However, the process of cutting back tends to equalize the process of supply and demand, and in order for companies to stem their losses, they usually err on the side of cutting back too far. This leads to subsequent shortages which is solved by adding capacity and personnel and the growth cycle begins again.

It looks like the growth cycle has started again. Since the market is a leading indicator, the stocks prices are increasing while cutbacks and personnel layoffs are still ongoing, but the worst should be over in that regard. The big question now is - when will the business recovery begin in earnest?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News