Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 259.21

-4.0%

Dec 12 9:30 AM EST

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To: Tito L. Nisperos Jr. who wrote (31924)	8/13/1999 9:35:00 PM
From: Ian@SI	Read Replies (2) of 70976

Looks like our friends at SSB were at it again today... smithbarneyresearch.com Summary portion follows: AMAT: Forget 3Q99 - How Do You Justify A Market Multiple On 2000 EPS Salomon Smith Barney Friday, August 13, 1999 --SUMMARY:--Applied Materials--Semiconductor Equipment Concerns over AMAT's bookings momentum led to a $5 decline yesterday. Company Guidance - sequential bookings growth from $1.39 billion (2Q99). Our prior expectations called for $1.5 billion in orders in 3Q99, some growth in 4Q99,and then THE PROBLEM (order flattening, which led to our downgrade 2 months ago). We believe that AMAT may take the stance of reporting only slight growth to create some cushion.In this context, how do you justify 3 year cycle theories ?? How do you justify a market multiple on cal.2000 earnings?? Bullish PC thesis supports current valuations, bearish PC thesis could lead to a 30% downside. With a tough near term risk/reward we rate AMAT 2H.

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