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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (32112)	8/19/1999 1:09:00 PM
From: w0z	Respond to of 70976

AMAT is currently trading at a FY00 multiple of about 20. Brian, consensus is $2.76 for next year (and that probably assumes >25% order growth BTW, not 20%). At $63, it is still almost 23X after the haircut from the upper 70's. By most measures AMAT was at the top of the semi heap in valuations (PSR, etc) and I sold 1/2 my position in the mid 70's. Just wish I had sold the other half! There are many other semi stocks that are much better values than AMAT even after the haircut. I'm just as bullish as anyone regarding their long term prospects but this is a simple case of the price running too far ahead of actual results. I hope you and everyone else are correct about the price since I still hold a substantial position, but it may take some better results next quarter to make it happen.