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

To: Proud_Infidel who wrote (6802)	8/27/1998 10:33:00 AM
From: Mason Barge	Read Replies (2) \| Respond to of 10921

1) As some of you might know, I keep an index based on a "basket" of 20 semi equipment stocks. (I used to post it on SI but it was too much work.) It hit an all-time low this morning (-1220). To the degree that it is accurate, this means that the sector is the lowest it has been since 1/1/97. 2) A word of warning about those of you basing purchases on book value. (This isn't directed at you, Brian, it's just a general comment.) Book value generally diminishes when a company has negative earnings. The market, although erratic, isn't completely stupid, and there is generally a reason (right or wrong) that a stock sells at or below book. Personally, when I see book below 1.2 to 1.5 (depending on the sector), I start looking at it as a negative, or at least a red flag. This is just a word of warning for virgins -- if you've never had a stock go to $0, you might not fully appreciate just how possible a 100% loss is.