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Politics : Formerly About Applied Materials
AMAT 292.20-1.2%Jan 7 3:59 PM EST

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To: Cary Salsberg who wrote (10458)11/6/1997 10:34:00 PM
From: Paul V.  Read Replies (2) of 70976
 
Cary, As we saw in AMAT's runup to $108 presplit at, I believe, a PE of 49 it is impossible to place a value on what WallStreet and or momentum investors will place on a stock. Your figures and the NAIC figures based on a $3.48 eps during your time span at the average pe of 25.3 gives you $88.00, therefore within your range. If you take the average pe of 25.3 we get 101 at 4.00 eps and 113.85 at 4.50 pe. If the momentum buyer take the pe up to 49 then the 3.48 = $170.52 and at $4.50 = $220.50. What a spread! Who can say based on what we have seen in the last year what the price will be in amat's future. IMO, the only thing I believe will happen is AMAT will go up the majority of the time reaching new highs. :)

Greetings,

Paul V.
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