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I've read a few posts about how analysts and others here have said this industry is in a downturn etc.. Keep in mind, that when Intel isn't selling silicon, they are developing new silicon. Any new development Intel does (with AMD and now VIA breathing down there neck) needs to be tested before being released. This means that KLAC can not only do well during the peak times, but they can also do well during these times. Intel and other companies need to inovate twice as hard during these down times, which only fairs good for companies like KLAC. Although the performance has been slightly wild over the past few months, they should be able to weather the storm well.
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brimstonehd:

This means that KLAC can not only do well during the peak times, but they can also do well during these [down]times.

Hmmm, I think I need to disagree, although I see the basic sense of what you are driving at. I've held this stock for a longish time, and its price tends to react quite in keeping with the cyclicality of the industry.

Good company though, and I'm glad to own it--its one that I've got buried in the back of my portfolio to take out and examine only on a quarterly basis.

steve
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Brimstonehd,

I neglected to read your profile before responding--welcome to the fool!

steve
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Thanks Steve!

I appraciate your response to my post. My original post didn't come out on paper the way I understood it in my head. I have that problem sometimes! hehe... It is definately interesting as to why the stock moves so closely with the industry. I mean, logically (If that ever applies when watching a company) it should do better when the chip industry on a whole is in a downturn. Of course, this wouldn't hold true in all situations. Especially in the case of Intel, and the way they have been building and expanding their business during the past few months (Although they have also put a halt to a few large deals as well) one would anticipate that KLAC would see more of an upward trend. Intel has at least 4 new chip designs coming out in the next 2 years...

I don't own any KLAC yet. I'm still working on the first principle of investing... getting out of debt and getting my personal fianances in order. I figured, since I don't have any money but I do have time, that I would learn how to invest ahead of time... Looking forward to more posts on the boards!

Lee J
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brimstonehd (Lee):

I don't own any KLAC yet. I'm still working on the first principle of investing... getting out of debt and getting my personal fianances in order. I figured, since I don't have any money but I do have time, that I would learn how to invest ahead of time...

Smart. Read, Read, Read--there are some great books out there. (Including anything authored by Peter Lynch, some of the Buffet biographies/analyses, The fool books aren't bad, Graham's intelligent investor, even something like Jane Bryant Quinn for overall financial planning.)

Start putting together a "practice portfolio" as well. Select stocks as if you were actually putting money in (maybe "investing" amounts akin to what you think you'll be putting in once the debt is erased), and track them over a period of time. Try to be realistic about when you'd buy and sell (hard to do, I know!), and follow your results.

(Most folks would recommend against something as volatile as KLAC for an initial investment--but if bought with eyes open and mind well-informed, . . . .)

Good luck--it sounds like you are starting off on the right foot.

steve
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