Semiconductors Hit Decade Lows

November 19, 2008

Semiconductors Hit Decade Lows

Today, the Philadelphia Semiconductor Index, aka the SOX, took out its 1998 low of 182, closing at 177 this afternoon.

In other words, Mr. Market is telling us that no value has been created over the past decade in the semiconductor industry, even though at the lows in 1998, chip stocks were trading at lows on book value and nearly at cash levels.

The 1996 low was 170. The 1994 low was 139.

I am a buyer of semiconductor and semiconductor capital equipment stocks.

Nov 19, 2008 10:11:50 PM | Technology

2 Comments

Toro,
you are right semiconductors are cheap and sinking like a stone. Only question is how low they can go. 150 is probable, 100 is possible but would surely be the lowest possible.

Posted by: marc russo | November 20, 2008 at 05:20 AM

Marc

I have no idea how low they can go. Markets will do anything they want. All I know is that they are dirt cheap and I believe they will be much higher a few years down the road.

Posted by: Toro | November 20, 2008 at 06:09 AM

The comments to this entry are closed.

"These are Not Unprecedented Times." - John Hussman Good article by John Hussman. One of the fallacies about the recent financial turbulence is that the markets are in “uncharted territory” and that there are no historical precedents for the volatility, panic, or economic uncertainty that we've observed. To...

Pirates v. Private Equity Amusing article at Deal Journal. I especially liked Start-up costs Piracy: Gun, boats, a handful of men, rocket-propelled grenades. Private equity: Office on Park Avenue. Jargon Private equity: “Internal rate of return,” called IRR. Piracy: Eerily similar: “Aaar.”