Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 267.87

-0.6%

Dec 5 9:30 AM EST

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To: EACarl who wrote (47196)	5/24/2001 8:29:54 AM
From: scott_jiminez	of 70976

Eric.... You say, '[For AMAT to reach $10]...all it would take is for AMAT to sell for a historically normal valuation for this point of the cycle. ' Certain data give complete support for your stance. For example, folks often note that the price to sales (p/s) ratio must fall to the 0.5 -1.0 range for any given equipment stock before claims about 'bottoming out' can be made. These are the current p/s of selected equipment stocks: KLIC....1.12 PRIA....1.39 ASYT....1.50 CMOS....2.26 LRCX....2.55 TER....2.58 VECO....3.17 AMAT....4.39 KLAC....5.07 NVLS....5.38 For AMAT to reach a p/s of 1.0, its share price would have to move to $12.06. Thus your statement about 'historically normal valuation' is quite accurate. Now we will both be lectured about 'how this time is different'.

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