Howard:<< I agree AMAT is a sell.
Money magazine's most recent issue says that AMAT, KLAC, TER all are significantly overvalued...and to sell them.
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Uh, Howard, you say the Money "rag" hard copy says KLAC is a sell. The Money "rag" on line, however, says KLAC is one of their 12 BEST investments for 1999. It also speaks highly of the semi equipment sector in general. Are you sure about your information? Are you sure it is Money magazine? Are you sure about anything in your post? Jeff
pathfinder.com
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TECHNOLOGY: HARDWARE
Making the case for the tech sector isn't difficult: If one part of the U.S. economy is booming, it's tech. Our reliance on computers, the Internet and semiconductor chips is growing exponentially.
KLA-Tencor (Nasdaq: KLAC):
We believe that the best investment opportunity in tech hardware over the next 12 months is in the semiconductor industry, in particular semiconductor equipment makers. As a group, the stocks were damaged by last year's Asian crisis -- far more than they should have been. Nonetheless, as chips get smaller, demand for ma chines to make them keeps rising. Chipmakers now spend an average of 23% of annual revenues on capital equipment, up from 18% two decades ago.
KLA-Tencor is the dominant player in the fastest-growing major segment of the business: metrology, or wafer inspection. And when we say dominant, we mean it -- 90% market share. As the chip cycle reaches its sweet spot -- within two years or so -- the company's gross margins will near 60%, which would more than double its per-share earnings.
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