Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jacob Snyder who wrote (39988)	11/26/2000 1:35:24 PM
From: brunn	Read Replies (1) \| Respond to of 70976

Jacob, Good point. AMAT did have negative earnings in one quarter (either the 3rd or 4th quarter I do not remember) in 1998 due to "discontinued operations." For the whole year of 1998 they did have earnings of .305 overall, after writing off this .08 expense. When I tabulated P/E's over the last decade I used .305 (included the write off) which led to the P/E for that year spiking higher--reflecting your concern about using P/E's to value AMAT. I guess I would say that I would use P/S during downturns when the E falls more dramatically than the S and AMAT is more likely to take write offs that may encourage manipulation. During the good times however, I feel that P/E may be more meaningful. The question now is are we headed for a period where P/E becomes questionable once again. On this issue I am conflicted between Morgan's discouraging earnings guidance and the increase in orders reported with the last Book to Bill.