Another pearl of wisdom from Cramer....LOL! He is Bullish on INTC, but Bearish on AMAT, when the two have as strong a correlation as is possible....if you can make any sense of this person, please let me know:
finance.yahoo.com
Upgrading Applied Materials Does Make Sense
Tuesday September 16, 10:20 am ET
By James J. Cramer,
When you are in the belly of the upgrade beast, you find some surprisingly positive morsels. Take Monday's upgrade of Applied Materials (NasdaqNM:AMAT - News) by Merrill Lynch. On the surface, this one seems like another mindless upgrade in an expensive group; in fact, the group has become this cycle's poster boy for absurd valuations.
After all, in fiscal 2003 (which ends in October), Applied Materials will be lucky to earn 13 cents. By any stretch of the imagination, this stock shouldn't be north of $10. When I discuss semiconductor equipment stocks with friends, including well-known bearish hedge funds, they look at AMAT and think, oh please, please don't make me buy it, this stock's outrageously expensive. |
