Mephisto---I follow AMAT with a long term outlook, i.e., years, not days or months. AMAT revenues and earnings are dependent on a healthy semicondutor industry which in turn is dependent on the long term growth of IT, (Information Technology). When you stop to think that the sum total of all the world's knowledge is doubling about every three years or less, and knowlege to be useful has to be stored, catalogued, searched, transmitted, displayed, etc., I can think of no better place to invest than within the IT market. Since hard copy, i.e., paper for a medium doesn't cut, not enough trees to make all the paper required and way to slow; then electrons, combined with magnetic and optical storage and photons in fibre optic links, should be the medium of choice for some time to come. Perhaps photons will take over for electrons in a general way sometime in the future but I'll guess not for 2 decades or more.
If this makes any sense to you, it's my way of saying that I haven't the foggiest idea of what the herd mentality of the Money Mangers will do in the next 10 minutes to affect AMAT's price and I really don't think about it. For the long haul I can go to sleep every night thinking that AMAT provides leading edge tools required to make chips, chips will be used in the IT market for decades to come and the market will continue to grow. I'm in the right place for significant gains over the long run.
Regards---jth |
