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Technology Stocks : Kulicke and Soffa -- Ignore unavailable to you. Want to Upgrade?

To: HoodBuilder who wrote (2626)	2/14/1998 1:16:00 PM
From: roly	Read Replies (1) \| Respond to of 5482

Michael, The tech sector specially the semis had been oversold when the Asia situation came up last Oct. If you will recall, AMAT, KLIC,CPQ, etc announced earnings well above expectation but those stocks still went down. The reverse is happening lately, inspite of repeated warnings of slowdowns in the next 2 or 3 quarters, AMAT, KLAC, NVLS, LRCX still went up.Why? These are my opinions: 1. Money from Mutual Funds are back. I believe funds are holding lots of cash and have no choice but to invest. Keep in mind that investors like most of us did not bail out or change or 401K deduction ispite of the Oct. drop. Also, the new Roth IRA and educational IRAs will fuel more savings. 2. There's also a possibility that more International money starts flowing into US equities due to the Asian situation. 3.We are also possibly seeing some sector rotations. The drug stocks are running at PEs of 45 and I belive the S&P is about 25 or higher. KLIC is a bargain even at 40 considering the Scott K. maid a comment before that he felt the stock was reasonably valued at 54 (before the Oct drop). There are lots of tech stocks that were severely punished. To name a few KLIC, AMAT, TER, CYMI, KLAC, PRIA, NVLS, etc. I too was thinking that there will be a short term downward movement last Thursday and Friday ( considering its the 13th) since all the tecnicals are indicating it but I was wrong. We may see some more short term move up. Next week will be a good test considering it is options expiration. If KLIC hold up this week and see gains, this stock will head to the 40s. Remember, experts predicted that the next wave of investments in semis i.e. 300 mm will start in 1999. We are almost there. People are afraid to miss the next up swing of the techs. Happy investing. Roly