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Technology Stocks : FSII - The Worst is Over? -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (1715)	1/12/1998 5:53:00 PM
From: ccryder	Respond to of 2754

<<I just don't want to invest in a stock one day at $X and then the next day have a "formal acknowledgement" by a brokerage house that my stock is going to have reduced earnings for the next 2 years>> I wonder if the 'inefficient market' is double dinging the stocks that have the formal acknowledgements. It could lead to some interesting value plays. One value play is in JBIL, a contract manufacturer. JBIL was dinged by the market when a customer, COMS, said they had too much inventory in modems (from the USR side they acquired). Well JBIL doesn't make modems for COMS. Again JBIL got dinged on the Asian crisis even though the net effect on the bottom line is a plus because they have plants in Asia and buy a lot of parts from Asia. All this JBIL dinging for no justifiable reason. It might be good to try to track the downgrades in our sector to see where the market has overcorrected.

To: Donald Wennerstrom who wrote (1715)	1/12/1998 9:18:00 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 2754

Don: The first stocks to show fundamental price improvement will be the large caps (AMAT, KLAC and such) that showed over the past year that they are taking market share and showing good earnings growth. LRCX is an enigma and I would not group it into these companies. Why? Because it lost market share over the past year. Its CMP product in ONTK is not taking share according to the SFAM cc. Now the big houses are wondering if LRCX will ever turn around during this cycle. That is the background issue that is affecting the price for LRCX. That issue is not floating other in the background of the other large caps in this sector.