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To: Joseph Beltran who wrote (36955)	11/13/2000 3:58:05 PM
From: sammaster	Respond to of 436258

semi equip stock pe ratios are always lowest at peaks and highest at low becuae most people anticipate the cycles... samir

To: Joseph Beltran who wrote (36955)	11/13/2000 4:20:09 PM
From: pater tenebrarum	Respond to of 436258

i agree...one shouldn't. i plead guilty...my earlier comment didn't take into account that some of these stocks have indeed come down to levels where their p/e's look attractive. i am after all doing some buying myself, based on the same consideration. you have to keep in mind though that the baby tends to get thrown out with the bath-water in general market declines. and the trailing p/e's of the semiconductor equipment stocks reflect peak earnings of the current cycle. it is quite possible that those p/e's will rise in spite of the stocks falling or staying flat, as the down cycle begins to bite. note that Korean and Taiwanese semi manufacturers are talking about closing fabs due to the crash in DRAM and flash memory prices. all that said, it probably can't hurt to begin to nibble here and there...always using trailing stops of course, since it is too early to call for an intermediate term low. we don't know yet if the market is just temporarily spooked or if a big economic downturn is coming. the credit markets certainly make as if they expect a hard landing...