Acting on panic never helps investors, but it's still a good idea to question why you're really buying individual investments.
Consider chip equipment supplier Applied Materials
Here at The Motley Fool, we like to consider both the good and bad sides of an investment, so in this article I'm highlighting three of the main bearish arguments on Applied Materials today. But be sure to read the bullish side as well, and then weigh in with your own comments below or rate Applied Materials in CAPS.
1. Slowing chip growth
Despite explosive semiconductor growth this year, signs are surfacing that the rapid growth in the chip sector won't hold up. Intel
2. Sliding solar
Along with Chinese solar players Trina Solar
3. Sector underperformer
Some CAPS members, unsatisfied with Applied Materials' share performance, have abandoned the company in favor of better situated peers. The stock is far from its prerecession levels and has shed 18% of its value over the past year, compared with 20% 52-week gains by smaller peer Lam Research
To see details of what CAPS members are saying now about Applied Materials, just click on over to Motley Fool CAPS and have a look, or add your own thoughts directly to this story in the comments box below.
True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community.
The Motley Fool Stock Advisor service looks for companies with strong management poised to beat the market over the long haul. To see all the stocks that have helped Tom and David Gardner beat the market by 65 points on average, take a free 30-day trial.
Fool contributor Dave Mock votes 3 the number of the day. He owns shares of Intel, which is an Inside Value recommendation. The Fool owns shares of and has written puts on Intel. Motley Fool Options has recommended buying calls on Intel. The Fool's disclosure policy was mocked when it forgot the correct sequence for the hokey pokey.