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Technology Stocks : Applied Materials No-Politics Thread (AMAT)
AMAT 304.84-0.8%Jan 13 3:59 PM EST

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To: Cary Salsberg who wrote (14228)4/12/2005 7:32:34 PM
From: Big Bucks  Read Replies (3) of 25522
 
Cary- Re: "The next 2-1 stock split will occur when the price of an AMAT share hits $60. When will it hit $60, when annual sales hit $16B. Earnings will be about $4B (25% net margin)

Do you expect to live that long? LOL!

Just doing some rough estimations based on your projection of
$16B in sales and guestimating each piece of equipment at
$3M each, that means that AMAT will need to sell about 5333
pieces of equipment in a single year to achieve that goal.
It might be achievable if AMAT buys out the rest of the
industry and is the only vendor remaining. That is a lot
of equipment to sell and support in 1 year, and where are all of these fabs going to be built that will purchase that
equipment?... I'm sorry, call me skeptical, though I'd love
to be proved wrong.
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