ASML US - Buy/Hold If >$1700; If Below, Risk Of Drop To $1450.

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Analysis by Alex King for Cestrian Capital Research, Inc;

ASML is, as everyone knows, the monopoly supplier of Extreme Ultraviolet Lithography machines, which as everyone knows, everyone needs in order to keep producing small feature size chips.

Semiconductor is, as everyone knows, the hottest sector in town and has been since March.

And therein lies the problem for the stock. Q2 earnings were good, the outlook was better, no problems on the fundamentals front. The valuation multiples are stretched, not a reason for caution in and of itself. The real issue is that the stock has been in a downtrend since June 30th, as has the semiconductor sector itself.