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

To: Gottfried who wrote (52376)	6/11/2011 6:05:26 PM
From: Donald Wennerstrom	Read Replies (2) \| Respond to of 95637

I think analysts, in general, have different methods of computing future earnings and target prices. I say that because in reading these estimates from providers such as Credit Suisse and S&P, each one seems to use a different method. <<Now, if we knew how the targets are established by each analyst. Based on TA or FA? Probably a different method by each analyst.>> Also, the methods they use may vary depending on certain circumstances that may be a part of each stock analysis. As to the usefulness of these target price numbers, let me add the following that I did not bring up before. Looking at the data for February and noting the large number of stocks with higher prices than the target prices(greater than 50 percent), that may have been the tip off to sell. Certainly for an ETF like SMH, that would have been a good plan in this particular situation since 2/18 was the interim peak for the SOX. Now the question may be - is it time to buy with the SOX down 14.6 percent from 2/18 and so many stocks with values much less than their target prices? - or do we still have a ways to go to hit a new interim bottom?