Michael, you must have missed my earlier post. I am sure that the head of the Pru quantitative research department would have had the same reaction as you to AMAT's present valuation, but he realized he had to change his paradigm to properly evaluate certain stocks. See below as I am reposting it in its entirety. The lesson is...adapt or go the Kurlak route. Jeff
To: Brian Kerecz (28206 )
From: Jeffrey D Tuesday, Feb 16 1999 12:17PM ET
Reply # of 28296
Brian, Prudential analyst Keon likes AMAT. Funny stuff because Keon is the head of "quantitative research" for Pru but he has had to throw out his own "quantitative methods" as he has found future earnings fundamentals to be better indicators. Well, in the survival of the fittest {analyst that is }as they say...adapt or die....or go the way of Kurlak. Jeff
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AOL, Best Buy, Others Liked by Prudential's Keon, Barron's Says
New York, Feb. 13 (Bloomberg) -- America Online Inc., Applied Materials Inc., Best Buy Inc., Microsoft Corp. and Scientific-Atlanta Inc. are among the stocks liked by Edward Keon, head of quantitative research for Prudential Securities Inc., Barron's reported. Those stocks, as well as Teradyne Inc. and Vitesse Semiconductor Corp., are among 63 stocks where Keon found that fundamental factors -- such as better-than-expected earnings -- were a better indicator of where a stock was headed than his regular quantitative method for evaluating them. The stocks he recommends are standouts from that 63, mostly large cap growth stocks, and have gained about 30 percent in the past three months, compared to the Standard & Poors 500 Index, which gained about 10 percent, Keon told Barron's.
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