Moon Kil Woong
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AXT Inc.: Oversold and Undervalued Technology Stock [View article]
In the long run the author is right in that AXTI will be around in the long term and may be one of the final winners in the space. That however doesn't justify throwing money into a cyclical top. Until the cycle turns and margins expand again AXTI shareholders will probably have to take their lumps and settle at low $20s stock prices no matter how profitable they are in the short run.
It is similar with many other semi stocks that trade on a low PE before the cyclical crash in which they then decline into losses. They go from a great looking value to what looks like an overvalued company that makes no profit. Then the cycle begins anew and they run up on growth prospects and earnings reappear.