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Politics : Formerly About Applied Materials
AMAT 252.34+1.0%12:59 PM EST

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To: Shoibal Datta who wrote (44300)3/22/2001 3:10:42 PM
From: Jacob Snyder  Read Replies (2) of 70976
 
It is exactly that volatility which makes this a good trading stock. There is a constant tug of war, with abrupt changes in short-term sentiment between:

Fear: fear that the stocks are still overvalued, that we are in a bear market, that demand for chips will continue to slump, semi capex budgets will continue to get steadily cut, bookings will continue to fall fast, and AMAT will, one day, abruptly drop to 20.

Greed: greed, because everyone knows the longterm story is intact, the rebound is inevitable at some point, and everyone wants to be on board for the next time the stock zooms to all-time highs.
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