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Technology Stocks : Novellus -- Ignore unavailable to you. Want to Upgrade?

To: zonder who wrote (3396)	11/26/2002 9:18:06 AM
From: LemurHouse	Read Replies (1) \| Respond to of 3813

A high P/E in and of itself is not unusual for this kind of cyclical business at the low point in the cycle. The BTB is bad and the near term outlook is bleak; but this is hardly news. I won't debate how the stock is priced here - I suppose a lot of that depends on one's time horizon and objectives. I'm comfortable being long the stock because I'm anticipating a strong cyclical improvement in the underlying business which will hopefully be reflected (and to great excess) in a rising stock price. As you suggest, that is at least several months out. Meanwhile I'm short near term calls because the stock is probably ahead of itself. The trend is still strongly up though.