What happened today to LRCX was totally irrational and a complete overreaction. The companies long-term growth potential is still very good. Market share in etch is up and growing, new products and new applications are coming in 2007, overall semiconductor spending is not dropping significantly. I think this company is clearly well positioned as one of the best (if not THE best) in the equipment sector.This company should not have a P/E = 12. If this thing goes to $45, I think it is a great deal.
Fred Hinkey in this week's Barron's says that LAM is a short because memory is over inventoried and LAM has a large percentage memory exposure. Hinkey is all gloom and doom so I take it with a grain of salt.I own the stock and have for a few years. Like you, I see it as a value play. It has dropped below its 20 day MA, however, which is definitely a warning. Current business is very strong with last quarter's revenue growing 77% and net doubling. I am still a holder here but a nervous one.Ken
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