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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Jerome who wrote (240)	11/1/2001 10:45:20 PM
From: BWAC	Respond to of 25522

<which stocks will rise the fastest and the quickest> Those which have the greatest operating leverage in flowing high gross margin profits to the bottom line when sales exceed a certain point of fixed cost. For instance: 400 Million Sales x 50% Gross Margin = 200 Less Fixed Costs of 150 = 50 profit. Small % Improving Sales = Large % Improving Profit 600 Million Sales x 50% Gross Margin = 300 less Fixed Costs of 150 = 150 Profit. A 50% increase in Sales = A 300% increase in Profits. And the upside seems so far away? So remote? When it is only just around the corner Sales wise. (At least in companies that have a history of sales moving that much in one quarter like semi equip and semiconductors themsleves)