Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 261.28

+0.8%

Dec 15 3:59 PM EST

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To: Jacob Snyder who wrote (55780)	11/17/2001 9:08:42 PM
From: advocatedevil	Read Replies (4) of 70976

Barrons: AMAT "Expensive by ANY measure" The valuation problem with many stocks is neatly illustrated by Applied Materials, the leading semiconductor-equipment maker. Applied Materials last week reported profits for its October quarter of just 3 cents a share, down from 77 cents a year ago. It gave a downbeat assessment of orders, due to depressed conditions in the semiconductor industry. But Applied Materials gained 0.75 to 39.26 last week and is up nearly 50% from its early October low of 26. Applied Materials now trades for about 200 times projected earnings of 20 cents in its current fiscal year ending in October 2002 and for about 40 times estimated profits of $1 per share in the following year. Looking back, the stock commands 17 times peak 2000 profits of $2.39 a share. Applied looks expensive based on virtually any measure of profits or sales. With a $33 billion market value, Applied trades for eight times estimated current-year sales and four times trailing sales. The stock troughed at two times sales in 1998. Worldwide semiconductor capital equipment spending is expected to drop 26% in 2002 to $30 billion, less than half peak levels in 2000, according to J.P. Morgan Chase. Investors seem to think that capital spending can get back to 2000 levels." ____________________ Note: I ran across the above which was posted on Yahoo! I can't verify its authenticity because I don't have a subscription to the Barron's site. If anyone here subscribes, I'd be interested in knowing if there was more to this article? ____________________ AdvocateDevil

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