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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (556)	5/12/2001 10:53:41 AM
From: Kirk ©	Read Replies (2) \| Respond to of 95953

Thanks again for the great charts! I want you to know that I email myself one weekly then make my own notes on it. Sometimes I just highlight the stocks I own... What is interesting to see over time is how LRCX has moved up in valuation ranking (via PEG). It used to sell at a 40% discount to AMAT and now it gets a significant premium. I think it is because LRCX has the right products for 300mm so they will do well with technology buys and capacity buys aren't as important, but I could be engaging in wishful thinking. Due to their VERY high PEG, I am considering when to take some profits as I did buy some trading shares around my long position at a much lower level. My guess is the industry is looking at more than what you show in the tables. Perhaps some feel earnings estimates for companies like LRCX at $0.48 are too low and they are using 2001 earnings to value the company? My guess is it is more on price/sales these days where LRCX is at 2.1 and AMAT is at 4.4! Would it be hard to add a column for Price/Sales? Sales numbers are every quarter so you would only need update manually every 3 months. I have a research report from MSDW they gave last month that shows charts of Price/Sales for the top 6 companies in the sector and they gave their buy levels based on the troughs for this graph. It was interesting to see how they worked it in that they released the report last month, the stocks they identified (LRCX was one) corrected into their buy zones, then the stocks recovered THEN they issued a public upgrade!