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Some charts on semis:
We can see semi's EPS coming down even further into year end. There's ~ a 13% spread between our estimates and the street. 
This puts the fwd multiple at 18.7x, or a 30% premium to the 3 year avg.
That said, on the streets numbers, we're trading at +2std above the 1 yr avg. $SMH
Where should we trade? Based on the historical relationship between P/EBITDA and the global PMI -- roughly 7x vs. 11x currently. This is a 36% haircut.
Price to sales indicating the same thing. Implies roughly a 24% haircut -- this assuming the PMI holds constant here which is not our base case.
That said, valuation is useless without a catalyst. The catalyst is liquidity, which is air pocketing from now to the end of the year.
$SMH at $120. R/R marginally skewed to the downside. /end
