Semi-Equips - Buy when BLOOD is running in the streets! Message Board

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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!

LRCX 142.62

+2.2%

Nov 21 9:30 AM EST

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To: Investor2 who wrote (4021)	12/20/1997 10:40:00 AM
From: Proud_Infidel	Read Replies (3) of 10921

Re:For instance, is now the time to move money out of the S&P and back into semi's? I2, I cannot say for sure that this is the time to move back into semi's, but IMO it sure as hell is time to get out of the Dow. It seems the larger the company, the more $ is thrown at it, regardless of valuation. All of the talk of overvalued techs amazes me with this index of stocks at stratospheric levels. I did some simple math to see how much in $$ you pay for each % point of growth between KO and AMAT given the following assumptions. EPS fo FY98 for KO= $1.73, AMAT= $2.00(I'm using #'s below mgts. but above ANALysts since I think by and large, they are morons). 5 yr eps growth of 11% for KO and 22% for AMAT(please note that by most standards, AMAT's growth rate is low and KO's is probably too high so I consider these #'s very conservative.) KO= (($65/$1.73)/11)=$3.42 for each % of growth AMAT=(($30/$2)/22)=.68c for each % point of growth Which would you buy? Regards, Brian

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