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

To: William Griffin who wrote (36292)	8/5/2000 8:38:27 PM
From: Jeffrey D	Respond to of 70976

WilliamG:<<If amat issues a strong report on Aug. 9. will this turn around the semi equip debacle.>> Impossible to answer. CS First Boston on 05/11/2000, the day after last quarter's announcement. AMAT closed at 85 the day of this report. I guess they have been "aggressive" buyers ever since! Jeff << Bottom Line: Use Weakness to Buy We are an aggressive buyer on weakness. Despite the strong growth in bookings , lack of upside to revenue and EPS for 2Q will probably be the primary focus of the street in early morning trading and we would expect to see shares of Applied come under pressure. However we would continue to focus investors on the intermediate to longer term trends for the semiconductor capital equipment industry. Business fundamentals are strong and improving. Lead- times on semiconductor devices and end market demand are solid and should continue to provide longevity to the current business cycle. Semiconductor capital spending as a percent of revenue is still well within historical norms and DRAM vendors still represent a less than historical percent of overall capital spending. The planets are aligning to establish a very strong 2HC00 for the equipment industry and Applied Materials by virtue of its product positioning and market leadership should benefit disproportionately. We would view any weakness in shares of Applied Materials as a buying opportunity. Our price target is $112 or 30 times our calendar 01 estimate of $3.80. >>