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

To: Sam who wrote (52778)	7/15/2011 6:22:33 PM
From: Donald Wennerstrom	2 Recommendations Read Replies (1) \| Respond to of 95761

This is the weekly look at the Group stocks in terms of percent change. Let's hear it for COHU, the only stock in the Group to finish with a gain for the week. Four of the stocks lost over 10 percent and the bottom line number for the Group is down 7.5 percent. All numbers for the major averages and semis are in the red for the week.

To: Sam who wrote (52778)	7/15/2011 11:05:36 PM
From: cluka	Read Replies (1) \| Respond to of 95761

Sam, NAND is commodity. SNDK has important IP and gets paid for it. That gives it a premium but it is still commodity business.

To: Sam who wrote (52778)	7/17/2011 10:50:20 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 95761

re SNDK: It doesn't meet the portfolio criteria, based on: Not a monopoly or duopoly. Commodity industry. Gross margins adequate, but nothing special. From 2001 to 2006, their total shares increased a lot. Since then, their LT debt has increased a lot. So, for the last 10 years, they've required either more debt or more equity to finance their business. Carries significant debt (LT debt = 1.7B$). Many of the names on the list have near-zero LT debt. Compared to INTC, they have slightly lower valuation (PE 8 vs. 10, P/S 2.0 vs. 2.7). But INTC is a far safer investment (higher gross margins, steadily falling share count, much stronger moat, better balance sheet). On balance, I'd rather pay the slightly higher valuation for INTC, and get a lot more safety. And INTC is in NAND.