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

To: Mason Barge who wrote (5941)	6/22/1998 11:50:00 AM
From: Rob-Chemist	Respond to of 10921

I agree that their share price is relatively high when compared to other semi-related stocks (with the possible exception of MASK, which is probably relatively much lower than PLAB and DPMI since it is traded much more thinly). However, when compared to the "typical" S&P stock with a PE of ca. 25, the PEs of PLAB and DPMI are very low (presently ca. 15, based on last quarters earnings of $0.30 and $0.50, respectively). My general philosophy is that unless the company is in a very cyclical industry or has virtually no growth potential, a PE of <20 is reasonably valued. While the semi industry is clearly very cyclical, the aspect of the semi industry that mask makers occupy is much less cyclical. Related to the independent mask makers, what are your thoughts on Fab and foundry owners continuing to spin off their captive mask shops? It seems that a significant number have done this in the last year, although IBM has been an exception to this trend since they may be strengthening their mask shop.