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Politics : Formerly About Applied Materials
AMAT 261.90+0.4%Dec 26 9:30 AM EST

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To: Lone Star who wrote (19535)5/18/1998 10:25:00 AM
From: Proud_Infidel  Read Replies (1) of 70976
 
LS,

Another reason AMAT is so attractive in this pricey environment is its low Relative Strength. At some point, weak RS becomes value. AMAT has not participated in the rally of the past several months and leaves me scratching my head as to why anyone would short it. If you are going to short a stock in this sector, why the gorilla, a gorilla with the ability to be profitable at nearly any revenue run rate?

Why not target for shorting those companies with the highest relative strength, ones which have been rallying well ahead of their fundamental picture. With AMAT I see no exhuberance, rational or irrational<GGG>

BK
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