Applied Materials No-Politics Thread (AMAT) Message Board

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Technology Stocks : Applied Materials No-Politics Thread (AMAT)

AMAT 223.95

-4.8%

2:59 PM EST

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To: Proud_Infidel who wrote (2944)	9/6/2002 2:15:11 PM
From: pompsander	Read Replies (2) of 25522

Brian: I have wondered the same thing. Many will point out that the historic P/E levels of past troughs have not yet been reached, and therefore the semi-equips are still too expensive. However, a look at Gottfried's charts shows that the bookings and backlogs now in place are not as "dire" as the situations in past troughs, so isn't a somewhat higher P/E reasonable? And, it would appear that margins will be higher coming out of this trough. And, AMAT, for example, has consolidated its position as numero uno equipment house since 98, so is that worth some additional premium? And, has cost-cutting and other "quality of management" issues justified the higher trough P/E? Also, what about the more ubiquitous nature of the semiconductor in our lives? The invevitability of new designs in new products, requiring new equipment, mitigates the impact of the formere "heavy PC cycle" dependence of 98. Just thinking out loud. I hold AMAT calls for Jan at 15....would love to cash them in in the money.

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