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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: molemania who wrote (3310)	11/6/1997 10:48:00 AM
From: Cary Salsberg	Read Replies (3) \| Respond to of 10921

Dave, RE: "Don't the semi-equip companies have high fixed costs and therefore a relatively small drop in revenues creates a disproportionately larger drop in net income..." To some extent, this is true of most companies. In fact, Fisher's PSR methodology is based on the fact that a small 10% drop in revenues may produce a 50-100% drop in earnings and result in a similar percentage decrease in the stock price. The SE Asia scare places some uncertainty on the expected revenue streams and the sell off attempted to discount this. Cary