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Technology Stocks : PRI Automation (PRIA) -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (793)	8/19/1999 5:35:00 PM
From: Ian@SI	Read Replies (2) \| Respond to of 1214

I'm not sure that I just wanted to keep the premium. I may have to just go out and buy some to add to my position. That way, I get to pay a lower commission than if I get assigned. All the same, the street's reaction to AMAT's earnings leaves me puzzled. I suspect the sellers don't appreciate that this up leg differs from others in that cycle times to build equipment have been optimized. This is allowing much more "turns" type business. In previous cycles pretty well all orders were counted as orders before they were recorded as sales. Now, orders are being converted into sales the same quarter as they're received preventing them from ever entering the backlog. Thus the Sales grow more rapidly than expected, while the backlog doesn't. It may take a quarter or 2 for these observers to recognize that business is still improving; even though the visible order growth rate and backlog growth appears to be slowing. JMHO, Ian.