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To: Donald Wennerstrom who wrote (4294)	8/10/2000 1:03:03 PM
From: Dale Stempson	Respond to of 5867

Brokers are positive. Here's a selection of four CNET analyst articles issued today that describe a positive outlook based on AMAT's report: _________________________ CNET Investor Broker Center: Chase H&Q Research Applied Materials, Inc. (AMAT)$72.12 - $62B mkt cap: Near-term momentum waning, long-term outlook very positive. Reiterate BUY. 3Q00: REPORTED $2.65Be/0.65e -> $2.73Ba/0.70a OctFY01: INCREASING $3.48EPS -> $3.65EPS · Quarterly bookings grew to $3.28 billion, creating a 1.2:1 book-to-bill. · Overall the Applied call provided some solid evidence that the current semiconductor cycle has not come to an end. Management expects capital expenditure increases at several leading semiconductor companies next year, and supported our view that the DRAM spending cycle has yet to kick in. 12 to 18 month outlook remains rosy. · Quarterly results essentially fell in line with expectations. Q4F00 guidance of only 6.7% sequential bookings growth continues to show a declining growth rate. While we are tweaking estimates, the change is relatively small in magnitude. · Although near-term data points for the capital equipment industry to likely remain sluggish, we continue to believe that fundamentals for the industry on a bookings momentum basis could improve substantially around Q4C00. Therefore, in our opinion, the current share prices provide an excellent opportunity for meaningful share appreciation within the next 6 months. _________________________ CNET Investor Broker Center: Bear Stearns Research Applied Materials, Inc. (AMAT · $721/8 Buy Price Target: $135 Keeps Getting Better Market Cap: $58.2 Billion Index: S&P 500, NASDAQ 100 AMAT came in at $0.70 above our and street consensus estimates of $0.68. Orders were reported at a strong $3.26B above our expectations of about $3.1 to 3.2B. AMAT has completed another record quarter of orders, revenues and earnings. AMAT's guidance was for $3.5B in orders and about $0.75 in earnings next quarter. Japan is finally starting to come back, at roughly 24% of business. Any minor reduction in the growth rate of Taiwan is being offset by new growth out of Japan. DRAM and Korea are still not back on track and this has lead AMAT to suggest that there will be a DRAM shortage developing due to underspending. Management was as bullish as they have ever been on the conference call suggesting that growth and momentum in the industry is as strong as ever and likely to continue through 2001. AMAT's view is that the industry will remain in relatively tight supply and continue at a high level of spending at least through the end of the year and beyond. Virtually every financial metric was a record. AMAT continues to be a strong cash generator, quickly approaching $4B in cash. We feel investor concerns about handsets were overblown as handsets are at best somewhere between 5 and 10% of semiconductors and the slowing is still unclear. We feel the switch to newer3rd generation handsets with a higher silicon count and value will more than offset any weakness in unit numbers. Strength in every other sector of semiconductors should easily swallow any extra capacity due to any handset issues. We feel very strongly about our AMAT as our top pick in the large cap space and feel this quarter's earnings should help turn the corner on what has been a long seasonal summer slide in these and other tech stocks. Bear Stearns: 10/2000E $2.39; Q4 $0.96 10/2001E $3.47 Consensus: 10/2000E $2.37; Q4 $0.75 10/2001E $3.42 Consensus Rating: 1.5 (last updated 8/9 _________________________ CNET Investor Broker Center: SG Cowen Research Applied Materials - Strong Buy Beat consensus ests; orders in line. FQ3 EPS were $0.70 vs. consensus est of $0.68 and our $0.69 est. Rev at $2.73B exceeded guidance of $2.6-2.7B. Both were records, as were bookings at $3.28B, yielding a BTB of 1.2. Results represent relief from negative forward perceptions. We believe AMAT will further improve, and that 300mm and net undercapacity in chip biz will drive 2001. Price target $115. Mkt cap $61B. AMAT $72 _________________________ Analysts Bullish on Applied Materials By: Cecily Barnes 8/10/00 Source: News.com Analysts released a series of bullish reports on Applied Materials today, after the chipmaker reported that its third quarter profits more than doubled in response to increased demand for chips. Applies said its Net income rose to $603.8 million, or 70 cents a share, compared to -$256.1 million, or a split-adjusted 31 cents, a year earlier. Sales in the quarter ended July 30 jumped 83 percent to $2.73 billion from $1.49 billion. Eric Ross, an analyst with Thomas Weisel Partners, reiterated a "Buy" rating on the company,and raised revenue and EPS estimates. "Applied has grown faster than the industry as it has chosen to compete in the most leading-edge and value added segments of the industry," Ross wrote. "We expect Applied to continue to be among the most successful players in the sector." Shares of Applied Materials traded down 81 cents, or 1.13 percent at $71.13 today. This year, the stock has traded as high as $115 and as low as $31.12. The top five most covered companies this morning: Applied Materials (AMAT): 9 broker reports Cypress Semiconductor (PSIX): 2 broker reports Real Networks (RNWK): 2 broker reports Adtran (ADTN): 1 broker reports BMC Software (BMCS): 2 broker reports _________________________ Regards - Dale Oh, and here's another from S&P: Standard & Poor's is a division of the McGraw-Hill Companies: "S&P Reiterates Buy on Applied Materials" personalwealth.com Standard & Poor's reiterated its investment recommendation of 5 STARS (buy) on shares of Applied Materials (Nasdaq: AMAT - news) after the leading semiconductor equipment firm posted fiscal 2000 Q3 EPS of $0.70, which beat the Wall Street consensus estimate of $0.68.

To: Donald Wennerstrom who wrote (4294)	8/10/2000 1:11:05 PM
From: All Mtn Ski	Read Replies (1) \| Respond to of 5867

Donald, There may be logic chips, but certainly no logic in the stock market! Even when the Street is beat over the head with empirical evidence, they still don't get it. My fear is that the Street holds back these stocks for 12 months, all the while companies report great earnings, but when the slowdown does occur, the Street then says "I told you so". Disappointed, but the fundamentals remain strong. The DRAM spending cycle AMAT alluded to in the cc should benefit LRCX greatly in the next several quarters. Cheers, Tom