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

To: Proud_Infidel who wrote (36251)	8/4/2000 11:33:22 AM
From: Proud_Infidel	Respond to of 70976

Chips not part of tech rally --10:54 am - By Michael Baron The chip stocks aren't participating in Friday's Nasdaq rally. The Philadelphia Semiconductor index ($SOX: news, msgs) is slipping 1.8 percent to 933.24. Weak performers include Altera Corp. (ALTR: news, msgs), down 4 15/16, or 4.8 percent, to 98 5/16; Teradyne (TER: news, msgs), off 1 3/16, or 2.2 percent, to 52 7/16; Xilinx (XLNX: news, msgs), falling 2 1/4, or 2.9 percent, to 76 5/8; Advanced Micro Devices (AMD: news, msgs), sliding 1 3/8, or 2.1 percent, to 64 1/8. This movement runs counter to a number of analyst comments Friday saying that the semiconductor production cycle is not nearing a close. Lehman Bros. offered a list of 10 reasons why the chip equipment cycle is in good shape, including the existence of huge demand for electronics products and continuing capacity shortages in the industry. Lehman says the semiconductor industry is still fundmentally healthy. "Unit volumes are rising, pricing trends are normal, and there does not appear to be large inventory accumulations of chips," the note reads.

To: Proud_Infidel who wrote (36251)	8/4/2000 11:43:54 AM
From: SeachRE	Read Replies (1) \| Respond to of 70976

PE ratio is irrelevant.Investors want out regardless, and so do I. Sold at the open today.

To: Proud_Infidel who wrote (36251)	8/4/2000 11:46:42 AM
From: Tony Viola	Respond to of 70976

Brian, AMAT doesn't have the lowest next year's PE of the stocks I follow: AMD's is 11.9. Then again, AMAT is a sector leader, AMD is not. If the DRAM mfrs would promise to behave themselves, the chip sector may not have cycles, or at least the CPU guys should not participate. The other non-CPU, non-DRAM semi companies, like broadband, wireless and networking chip type mfrs, should follow the CPU guys more than the DRAM guys. Here's what I'm talking about: Message 14164221 Tony

To: Proud_Infidel who wrote (36251)	8/4/2000 12:05:59 PM
From: Mephisto	Respond to of 70976

"The cyclical nature of the semiconductor market has been the subject of much discussion lately in financial circles. Weighing in, Lehman Bros. provided a list of 10 reasons why its analysts and strategists think the chip equipment cycle is in good shape. The investment firm cited huge demand for electronics products and continuing capacity shortages in the industry. Lehman also characterized the semiconductor industry as "fundamentally healthy." "Unit volumes are rising, pricing trends are normal, and there does not appear to be large inventory accumulations of chips," analyst Ed White in a research note." The above is an excerpt from: Chip stocks' early gains fizzle By Janet Haney, CBS.MarketWatch.com

To: Proud_Infidel who wrote (36251)	8/4/2000 2:02:07 PM
From: w0z	Read Replies (4) \| Respond to of 70976

Where's the value? (numbers from SI's profiles) Price/Earnings Price/Sales Price/Book Price/Cash Flow KO 97.37 7.77 16.99 134.62 AMAT 43.67 8.34 10.14 56.37 Do you think we will be consuming 20X the amount of Coke per capita in 7 years? ("Semiconductor Industry Association forecasts exponential growth in annual demand from 50 million to over 1 billion transistors per person over the next seven years"...that's 20 times for the analysts and reporters reading this)