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


To: space cadet who wrote (6601)8/11/1998 8:31:00 PM
From: Czechsinthemail  Read Replies (2) | Respond to of 10921
 
space cadet,

You should check the price history on semi equip companies, because many/most have already gone through a deep dive. Calling the bottom for semi equips is always challenging because there will be such a massive upswing after it happens that everybody and his dog wants to be invested in. So people are trying to forecast that as far in advance as possible and the bottom typically occurs while the news and immediate prospects look gruesome, like -- well, like now.

Eventually, you get to a point where the people owning shares are unwilling to sell and simply hold tight waiting for the cycle to turn up. With long term investors averaging in whenever prices dip, you eventually hit a point where prices don't drop and instead pop up very dramatically and very quickly. Short-covering, bargain hunting and early adoption momentum players can accelerate the turn to the upside.

You may be able to make money on the short-side, but given the enormous declines most of the stocks have seen, it's no slam dunk.

Baird