oppurtunities in the chip and electronic equipment market

**vik589** Thu Dec 29, 2005 2:01 pm

oppurtunities in the chip and electronic equipment market
Hi Blast
I recently read an article in the IBD that in the next 3-5 years the sale for HDTV will almost triple. Congress has passed a bill mandating that all TV for sale in the market should be Digital HDTV capable by the end of 2009. They will sell the analog radio spectrum to the wiireless broadband industry. Therefore from that point on all people will need a digital HDTV. This can create some oppurtunities in the chip and elctronic equipment maker market. IBD had a list of some of the big players in this sector. Some examples that come to mind are BTUI, WFR, VESA,COHU etc. My question is that have you looked at this sector and do you see any good plays that could capitalize on this oppurtunity. Thanks

**blast_investor** Thu Dec 29, 2005 2:36 pm

Hi vik589:

These HDTV stocks are pretty expensive stocks with hot concept.

I do not like them. They are not value stocks.

Hot stocks with great growth prospect are exciting. But they are usually bad choice to invest for the long run. Once a while you may find a future Intel or Google there in the list. But the chance of winning in the long run in them is pretty small statistically. Chip and electronic equipment sector historically has had horrible business model with low margin and high price competition. Even high volume of sales do not equal to high profit.

Just put some cold water here, the insiders in pretty much all of your stock list are selling shares in large amount like mad. IBD may have exciting HDTV news, but the insiders certainly are not very excited about their shares.

I don't read IBD. IBD is momentum and growth oriented newspaper. IBD does not have that much useful information for value investors.

**vik589** Fri Dec 30, 2005 2:29 pm

Thanks for your reply Blast... :D . As always it is very informative. Do you have any suggestions about what is a good publication to read on a daily basis to get value investment ideas....i know you use stock screeners to come up with your picks but in addition to that do you also read a particular newspaper to keep up with developing oppurtunities. Thanks

**blast_investor** Fri Dec 30, 2005 2:34 pm

Wall Street Journal is very good newspaper to read daily.

Please see my article:
My Top 5 Stock Pick Sources for 2005
http://www.blastinvest.com/article/2005TopLead.htm