SwingTrade Member Forum

[MikeDDKing]

The semiconductor growth cycle isn't what I thought it would be when I initially purchased. In part this is due to the slowing of demand for PCs. In the semiconductor equipment sector I think KLIC is a much better company to own which is why KLIC remains in the portfolio. Analysts existing estimates for KLIC are for 2011 EPS of $1.75 or a forward PE of 3.5. Also, KLIC's book value will likely hit the current price by mid 2011. By contrast, INTT's balance sheet is much weaker. Earnings for a company like INTT are much harder to estimate for next year. KLIC also is benefiting from the transition from gold leads to copper (technological change driving sales) which gives them growth beyond that caused by booms in semiconductors.