Formerly About Applied Materials Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials

AMAT 230.92

+3.1%

Nov 24 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: KY who wrote (28654)	2/27/1999 8:18:00 PM
From: Alok Sinha	Read Replies (2) of 70976

If NAS remains weak, I wouldn't be surprised if AMAT sees low 40s. This stock has gone straight up from the lows 30s to 60s based simply on one figure - increased orders in Jan. If you look at their revenues and earnings over the last 8 quarters , on a period to period basis , they are always down or flat. A yar and a half ago the stck ranup to 50s (split adjusted) on the same type of new order hype. Somehow it did not translate into earnings growth further down the line. If this continues, AMAT will always have a P/E that is out of the world (and a lot of promise) - Micron is a similar situation. Look at their recent earnings performance - crappy to say the least. Both are undoubtedly leaders in their segments, but have little pricing power (but institutional investors love thse stocks as it has made hem a lot of money in the past). Predicting where revenues will be in 6 - 12 months is more or les a crapshoot in the tech arena, unless you are a MSFT, CSCO or maybe SUN (recently). Technically these stocks may bounce back some, but if tech outlook weakens we may see prices corresponding to a stock split without the doubling of the shares outstanding. I do believe that day trading (or option trading) can make a fortune in these stocks. I wouldn't hold such fundamentally weak companies (EPS standpoint, not technologilly wise) if someone held a gun to my head. I did come very close to buying AMAT Mar 60 puts last week, but the premiums were exceptionally high so refrained. Did purchase some CSCO Mar 95s and was handsomely rewarded. Regards Alok

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next