Tuesday, March 15, 2005
Watching Paint Dry.......
It's like watching paint dry. Look at the chart below. It portrays the action in Applied Materials (AMAT) over the last two quarters.
Nothing doing.... Going nowhere..... Boring.... Oh sure, there are a few investors that can trade these little ranges, pocketing a nickel or two here and there, but generally Wall Street, excluding the 30+ analysts that follow the company, is showing little interest. Something is missing..... Fundamentals? Perhaps so....
It probably will not be much longer before companies in the chip and chip equipment sector break out of these ranges. There are a few analysts out there that believe the break will be to the downside - pushing share prices toward the lows posted several years ago. A move like that would be shock for many long term holders. Personally, I don't find it out of the realm of possibility. In fact if it did happen I am hopeful that it happens sooner rather than later.
Chart Watch and Model Comments are under construction. We're going to make some trades this week. Those comments, along with other items of interest, will be posted and e-mailed ASAP.
Your thoughts are welcome and appreciated.