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

To: Gottfried who wrote (33200)	11/16/1999 10:40:00 AM
From: Q.	Read Replies (1) \| Respond to of 70976

Thanks, Gottfried. That excellent chart suggests that AMAT is overvalued by a factor of two or even more. Historically, AMAT has traded at a PSR of around 2-3. It shot above 5 or 6 in 1997, during a euphoric period of high order activity, just before the Asian Flu. Now it is trading at a PSR of more than 10. It seems to me that the stock price is already discounting a three-fold increase in revenues. If you buy the stock now, and revenues go up X3, then it would be fairly valued if the stock remained flat during that tremendous growth. I'm certainly open to other opinions about this ...