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

To: John Sikora who wrote (3788)	12/12/1997 9:46:00 PM
From: Ian@SI	Respond to of 10921

John, The CSCO story sucks (it's a technical term)... I don't own CSCO, ... yet. It lost about $4Billion in market cap today. Why? 1 reason offered was insider trading which CSCO IR characterized as "normal". A second reason offered was an extra $40Million in finished goods component of inventory. Again CSCO IR indicated this was deliberate. They established a second distribution channel to an incremental market segment. The inventory in the channel is not counted as Sales until delivery to the final customer. Sounds more like incremental sales growth to me than incremental inventory. Usually companies get rewarded for conservative accounting practices. ...but what do I know. Compared to the CSCO story that I've heard, the Semi Equipment stocks are being trashed for good and valid reasons. ... and in case anyone hasn't read my previous posts, I believe those selling semis at any price are being rather shortsighted. Absolutely correct, but shortsighted all the same. Ian.

To: John Sikora who wrote (3788)	12/12/1997 11:50:00 PM
From: capitalistbeatnik	Read Replies (2) \| Respond to of 10921

Techs are the only sector that keep falling on the rumor, then keep falling on news stories that confirm the rumor. When the Asia panic hit, they dropped 30-40 percent. Fine. But then they keep drop when cos announce earnings disappointment commensurate with that market phenom. Since this happens it creates tremendously oversold situations. But its really only one bad news story. The converse happens on the top. The time to sell is when every brokerage house loves them, earnings estimates rise, and new orders come in.