Bad News Is Good News
The news. It is
a-changing.
More good tidings, and mainly from the
semis.
Oh, and yeah, some company known as
Big Blue — which only comprises 11% of the tech portion of GDP — also had kind
words.
AMD
(
AMD |
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PowerRating) posted a negative
earnings surprise — and the stock shot up 23% — mainly from the
constructive guidance it served up.
Xilinx
(
XLNX |
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PowerRating) missed by a penny,
yet the stock put on 12%.
This is the sort of
bad-news-equals-good-news vibe that has been lacking in the Naz’s various
attempts at bottoming.
Lacking, at least until now.
Meanwhile, Comverse
(
CMVT |
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PowerRating),
though quite choppy, neared the top of a multimonth base.
The irrepressible Dupont Photomasks
(
DPMI |
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News |
PowerRating)
located the winner’s circle for the ninth day.
MBNA
(
KRB |
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News |
PowerRating) is working on a
three-month base.
Microsemi
(
MSCC |
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PowerRating) is three days
into a handle.
SunTrust
(
STI |
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News |
PowerRating) is two weeks into a
handle to go with its seven-month base.
In the real estate market, there are
three primary factors that determine the value of one property relative to
another: location, location, and location.
In the stock market, it boils down to
earnings growth, earnings growth, and earnings growth.
This explains the ability of Cabot
Micro
(
CCMP |
Quote |
Chart |
News |
PowerRating) to leapfrog all other semis in both relative strength and
tone.
Cabot’s earnings have averaged 258%
over the past four years and are expected to amount to +43% and +42% in ’01 and
’02, respectively.
Otherwise, The Great Paradox surely is
the high level of bullish sentiment, possibly the market’s sole abnormality
since the March 10 top.
Even after such a scathing cleanout in
every speculative pocket of the market, the II survey still shows 57% bulls, a
high level, and one that more often corresponds with a top than a bottom.
Still, one indicator cannot and should
not be relied upon.
How and where participants put their $
into the market should.