Wildstar, Basically, it is because of the chip industry's decline, in general, and AMAT's gross valuation in particular. Remember, this is a co. that lives and dies by DRAM, and DRAM is in deep kimshee. Last quarter, the biggest order for the firm came from a partnership in which AMAT is one of the players. Man, that is faking an orgasm if I ever heard one. However, AMAT and other equipment firms tend to be lagging indicators on the downside, as the chip cos. have to 1. figure out they are in trouble, 2. still pay for what they have ordered, and 3. order nothing for awhile. I think we are still somewhere between steps #1 and #2.
Cisco is overpriced, but it is still doing ok. I look for it to start having trouble this summer as Y2K eats its lunch. I'd rather play the lesser lights on the put side here. MB |
