SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Applied Materials No-Politics Thread (AMAT)
AMAT 301.11+6.9%Jan 9 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Lizzie Tudor who wrote (6764)8/13/2003 11:38:17 PM
From: BWAC  Read Replies (2) of 25522
 
<I'm sure amat and most tech companies will earn much more this cycle than during bubble peak,>

Out of the last 12 years AMAT has had 3 years where earnings exceeded $600 Million. 1996 was $600 Million, 1999 was $747 Million, 2000 was $2,063 Million. May as well lump 99 and 2000 together.

In 12 years they have total combined net income of $5.772 Billion. 36% of that was earned in year 2000. 48% was earned in the two years of 1999 and 2000.

What about the other 10 years?

On average with 1.652 Billion shares outstanding AMAT has earned a whole 30 cents a year.

Analysts are talking 45 cents for 2004. Far better than an average AMAT year. A year that would rank in the top 3.

So I guess the financial pros are telling us that AMAT should be valued at 60PE on average long term earnings, who knows what PE on less than average earnings, and one year ahead of time at 40PE based on higher than average earnings expectations. Or when it does get to the $27 target published today at the 60PE again.

But we as investors shouldn't worry? Cause along will come the monster cycle year eventually that will get the PE under 20?

I know I'm being cynical, but this is just nonsense. Vegas is both quicker and easier to game.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News