Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 307.20

+2.0%

3:59 PM EST

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To: Sam Citron who wrote (53305)	9/27/2001 3:23:17 PM
From: Sun Tzu	Read Replies (1) of 70976

I don't think it really matters. The issue is that the market is busy pricing in the first global recession in 30 years. Why the companies will not be making money is secondary. In the current environment, sell first and ask questions later. If you know where the rock bottom valuations relative to operating parameters are, then you can use that as guidance of where the bottom may be. In a normal market, there's constant exchange between value fund managers and growth fund managers. In good times the value managers let go of their expensive stocks and pass them on to the growth guys. In bad times the growth guys dump the stocks until eventually those stocks find a home with the value investors. Currently growth is out of the window. But value, while existent in some stocks, is lacking a catalyst. So the only time that value investors are willing to buy is when they think the prices justify holding the stocks until the catalyst arrives. Find out what those valuations were in the past and you can use them as a watermark of where the buy range should be. ST

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