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Politics : Formerly About Applied Materials

AMAT 323.15

-0.6%

10:30 AM EST

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To: hb who wrote (10913)	11/13/1997 10:20:00 AM
From: Proud_Infidel	Read Replies (1) of 70976

right now, the indications across all companies is slow growth than last year. hb, I believe it is errant logic to characterize the entire market as having slower growth than last year. IMHO, the most overvalued companies and the ones which should be punished the most are those in the Nifty-Fifty with stratespheric p/e's and lower growth rates than say AMAT. Why are KO and G still trading where they are when much of their future growth is predicated upon a strong Asian Tiger? I know the argument is that people will always buy a can of Coke even in a recession but I do not agree. KO derives ~ 80% of its operating income from outside of the US and much of that from Asia. My question is: why do we not see these stocks pummelled like AMAT has been? Again IMHO, this is a market in search of a Xanax and we still are not seeing rational values given to the large multinationals. The point I started on was the fact that although growth may slow in general for some companies, it is not wise to paint a wide swath accross ALL companies. AMAT's story remains intact IMO. Unless the overall demand for chips drops, the drop(if it even comes to fruition) in Asia must be offset in Europe or the US. It is simply a supply/demand issue. AMAT's growth should be spectacular the next few years; I believe it will prove to be an anomaly to the overall market, with its growth rate largely unaffected. Hopefully I am not looking at things through AMAT colored glasses; it's just that everything I have heard or read indicates no slowing of capacity as is currently seen in the share prices of these companies. Regards, Brian

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