Semi-Equips - Buy when BLOOD is running in the streets! Message Board

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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!

LRCX 172.23

+4.6%

3:59 PM EST

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To: Proud_Infidel who wrote (8570)	9/14/2000 12:32:23 PM
From: Math Junkie	Read Replies (1) of 10921

Interesting discussion. Why is that high when EMC, MSFT, INTC, and CSCO trade at valuations much higher yet have LT growth rates similar to AMAT? One argument I have heard made is that multiples in different industries do not necessarily fall in the same range. None of the stocks you listed above is in the semiconductor equipment industry, which tends to have deeper cycles historically. That history may be what makes investors reluctant to pay the same multiples for semi equip stocks as for other types of tech stocks. If you believe the cycles should smooth out over time(as I do), I think these cos are not expensive by any metric you use. But not everyone believes that the cycles will smooth out, and probably won't believe it unless and/or until they see it actually happen. It is possible that you could be right, but there is still a risk that you might not be, and perceived risk is still a factor in determining any stock price.

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