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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (38004)	2/7/2008 9:20:19 AM
From: michael97123	Read Replies (1) \| Respond to of 95790

There is no doubt that SMH is in better financial shape than ever before and that the cycles have been smoothed somewhat. But if we are headed into recession, the market who apparently still hate the chips from the first crash will price them lower. I see value at cisco at todays price but what i see doesnt matter much. Over the next year what would you rather hold, smh or xlf?

To: robert b furman who wrote (38004)	2/7/2008 9:25:08 AM
From: Sarmad Y. Hermiz	Read Replies (2) \| Respond to of 95790

>> if you aren't keeping up you'd better shift gears and get there quick or be left behind. It looks to me that recent recessions are not doing the job they are supposed to do. Classic recessions are caused by over-supply, then weak producers go out of business, winners get stronger, profits increase, new entrants get in, economic activity picks up. Then over-supply again, and the cycle repeats. But this time no weak producer is going out of business. Have any semi-equip companies actually lost money in the past few years ? Apparently there is enough total revenue to keep everyone in business, as far as employment goes. But there is no profit for investors. So as long as semi-equip companies do not need new capital to stay in business, there is no role for investors. And no justification for stock holders to make a profit. they can all go jump in the lake, as far as managements are concerned. If the corporation can keep going with no need for new external investment, who needs investors ?