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Politics : Formerly About Applied Materials
AMAT 301.11+6.9%Jan 9 9:30 AM EST

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To: Richard Russell who wrote (9075)10/21/1997 9:27:00 AM
From: Proud_Infidel  Read Replies (3) of 70976
 
Re: AMAT's "Overvaluation"

AMAT is currently trading at about 16X next year's heigh-end EPS projections of $2.50. This is your idea of overvalued? And this for a company which should see EPS growth of 30% for the coming years. At a price of $30, AMAT would be trading at 12x next years high EPS forecasts. This would be ludicrous. In a market which gives Coca-Cola a P/E of 22x on year 2000 earnings(keep in mind that they'll be lucky to grow EPS at 15% per year, one half of AMAT) I have a difficult time listening to the chants of "AMAT's Overvalued." If you want overvaluation, why not look at companies trading at twice their growth rate instead of half? MSFT, AOL, NSCP, AMZN, YHOO, KO, G......... The list goes on and on but everyone still seems to focus on AMAT.

Brian
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