|Too Rich? |
Chipmakers and equipments sporting heady valuations
|Stock||Price Rise Since October 8||Consensus Outlook for Sales Growth in Upcoming Fiscal Year||Current Forward P/E|
|Source: Baseline, Thomson Financial/First Call. Based on Monday's closing prices.|
"My opinion is we've seen a 180-degree change in sentiment and attitude in a very short period of time, and not a whole lot has really changed in terms of fundamentals," Adams says. "I don't think there's a lot of risk in shorting the stocks." Adams is shorting premier chip names, such as Analog Devices ( ADI), Xilinx ( XLNX) and RF Microdevices ( RFMD).