Josh Brown Buys Lam Research Amid Market Volatility

Josh Brown's Lam Research Purchase

• 💡 Josh Brown, CEO of Ritholtz Wealth Management, details his new buy in Lam Research (LRCX).
• 🎯 He explains that despite Lam Research being a strong performer all year, he was able to buy the stock under $100.
• 📈 The purchase is considered a trade based on technical indicators like a rising 50-day moving average and the stock giving back its post-earnings gains.

Market Reaction and China Headwinds

• ⚠️ The selling pressure on Lam Research is attributed to export licensing issues with China, highlighted by Applied Materials' (AMAT) weak guidance.
• 🧩 Brown believes the market is treating Lam Research as part of a basket of stocks affected by these China-related concerns, causing it to get caught in the crossfire.
• 📉 He argues that the selling is misplaced and wrong, as Lam Research affirmed its guidance just days prior, and he doubts a material change has occurred.

Investment Firm's Perspective

• 📊 Rob from the desk notes that while Lam Research has been a great performer, it is not cheap, trading at a 30% premium to its 10-year average.
• 🗂️ He acknowledges that these are high beta businesses that can get caught in market rotations.
• ✅ Both Brown and Rob agree that for those looking to own Lam Research, the current dip presents a buying opportunity.