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

To: Proud_Infidel who wrote (35273)	5/19/2000 10:03:00 AM
From: scott_jiminez	Read Replies (3) \| Respond to of 70976

Brian - perhaps you should exercise significantly more caution when claiming 'cheap' equipment stocks. The relative valuations have been reduced across the board. For example, I follow Kulicke and Soffa. Here is your post transposed and adapted for KLIC's earnings estimates. Note that all the numbers are based on consensus estimates: Using yesterday's close, KLIC's forward PE is now 14.1 (AMAT = 26) using consensus estimates of $3.68 for FY00. Consensus FY01 EPS estimates for KLIC of $5.44 give a forward PE of 9.6 (AMAT = 19) !!!!! (Klic will also experience the inevitable ratcheting up of estimates.) To reinforce the point, two weeks ago Donald Wennerstrom did a earnings estimate-based valuation study of his population of about 40 equipment stocks. KLIC came out on top as THE MOST UNDERVALUED STOCK IN THE ENTIRE GROUP! Message 13569823 I doubt the situation has change much since then. While KLIC may not be a gorilla, it currently MUST be one of the cheapest equipment stocks out there.