Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Minyan Mailbag: Tech Stock Bottoms?

By

It's hard to call a true bottom but many of these names could be close.

PrintPRINT
Prof. Udall,

I enjoy reading your articles on Minyanville. I read a blog (Below NAV) which had quite a few tech stocks on it. I was wondering what your thoughts on MKS Instruments (MKSI), Silicon Image (SIMG), Rudolph Technologies (RTEC), Integrated Silicon (ISSI) and Eagle Test Systems (EGLT) were? Also, I used to work at Lam Research in the 90's and you could always count on semi-caps to rise/fall on buy/despair and sell/euphoria. Quite a few of the stocks are nearing bottoms with regards to P/S ratios which are a good barometer for the semicaps.

I saw that
you mentioned Kulicke & Soffa (KLIC) and Brooks Automation (BRKS). MKSI and RTEC were mentioned above as they are in the same space and it seems that Credence Systems (CMOS), Electroglas (EGLS), Asyst (ASYT) (also has insider buying) are nearing attractive buy points. I used to use KLIC as an early barometer for the semi-caps as their stock price tended to lead the rest of its brethren but not sure if that still holds true.

Happy Holidays!
- Minyan Andre


Minyan Andre,

As I said, literally hundreds of stocks currently are grossly oversold and pricing in something between a bad recession and total calamity. Of the stocks you mentioned I know MKSI and RTEC the best and they have exquisite balance sheets. If memory serves me right, many of the others don't look as strong on that basis or from a net cash position.

EGLT has a very nice balance and net cash position as well but it's not quite as liquid as many of the stocks I named. Interestingly, Nextest Systems (NEXT) got acquired recently with almost zero pin action in this space.

Again, it's hard to call a true bottom but many of these names could be close and if the big R ends up being a big scare then there could be solid upside among many of these names.

Currently though, the market is very illiquid and on a razor's edge. Defining your risk limits in size, allocation and balance sheet strength is something to be ever mindful of.

MKSI could very easily be on the list.

-Prof. Udall
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE