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 164.06

+3.0%

11:42 AM EST

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To: Pink Minion who wrote (10610)	8/15/2002 12:48:43 PM
From: Robert Douglas	Read Replies (1) of 10921

Keep telling yourself that. 8.6 times book value is still 4 times normal. Apparently my attempts to get you to a deeper level of analysis are failing. Price/Book Value as a measurement of value depends on what type of return you expect on equity. I'm expecting that AMAT will earn well over 30% on this equity during the coming cycle. Here's a quiz to get you to think. Which is the better investment? A) A company selling at 10 times book that earns 50% ROE. B) A company selling at 1 times book that earns 2% ROE. So when you talk about "normal" you are completely missing the boat. AMAT is not a "normal" company that earns "normal" returns.

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