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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (8921)	2/10/2003 7:16:33 PM
From: DanZ	Read Replies (1) \| Respond to of 10293

FLEX is my favorite in the semiconductor sector, followed by MOT and LSI. The semiconductor stocks are not good long term investments because of their cyclical nature, but they make excellent one to two year trades if you buy them near the bottom of an economic cycle. The bottom of the economic cycle has already passed, and these stocks are now depressed by Geopolitical issues rather than fundamentals. FLEX is the strongest of the EMS companies, and deserves a higher valuation than 0.3 times sales. I don't disagree that CC has stiff competition from BBY, and even to a lesser extent WMT. However, at $4.85, the stock is trading at 0.1 times sales, 8.5 times earnings, and cash value before their miniscule $70 million in debt. The company also recently announced a $200 million stock buy back, and if they put their money where their mouth is, it should provide support for the stock while the market risks are resolved and they give the market confidence that their restructuring will be successful. The bad news is more than priced in here. HD has competition from Lowes, but the stock has already discounted the worst at 0.9 times sales and a PE of about 13. They aren't the hyper-growth company from their younger days, but the valuation is very reasonable given their expected growth. I wouldn't say that this is my favorite, but at the current valuation, I think that it offers lower risk than the market, and at least market returns if not slightly better. Proclaiming that you were correct about MTXX is off the mark. The company's sales and profits have grown more than you ever dreamed possible, and that is what will eventually drive the stock price. Your opinion that Zicam Cold Remedy is a "worthless, homeopathic placebo" doesn't mean squat, and has been refuted in more than one clinical study anyway.