Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Robert Douglas who wrote (6813)	8/28/1998 1:52:00 PM
From: Will Lyons	Read Replies (1) \| Respond to of 10921

Quite correct re book value, but what if the cash portion of the assets is equal to or above the stock price ? -- so lets look at price/cash ratios.

To: Robert Douglas who wrote (6813)	8/28/1998 2:17:00 PM
From: Fortinwit	Respond to of 10921

I'm still a pretty big fan of book value for the semi-equips. Since earnings estimates are so volatile and are too high at cycle top, and too low at cycle bottom, P/E's are not an accurate valuation tool in this industry (IMO). However, since there is somewhat better accuracy in book value calculations, you at least have a consistent number to look at as we move through the cycle. And in this industry, you can use P/B to more accurately gauge the cycle. It's far from perfect, but it's better than P/Es. And that's why I'm looking at these numbers quite diligently now. I haven't published my spreadsheet in a while, so if I have time this weekend, I'll try and get that out. Oh yeah, I pretty much agree with your comments about Book and technology stocks otherwise... F.