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

To: Gottfried who wrote (65245)	8/6/2002 8:49:42 AM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 70976

>> please check my math Gottfried, the math is correct. But I think the point here is that P/S ratio really is a range, and not a single number. I guess that was pretty obvious already. And the current reading is well within the range. However, the forecasting aspect of your calculation is in where in the cycle we are at this time. It does look like the trough in sales is behind us, and future Q's will show higher revenues. I sure hope so, for my financial future. As everyone is saying, Cisco's report today will shed light. ANd AMAT's soon will show even more about our place in the universe ... er ... I mean semi-cycle. I glimpse some green on cnbc ticker. I hope it lasts. Sarmad

To: Gottfried who wrote (65245)	8/6/2002 1:05:19 PM
From: SpecialK	Respond to of 70976

Gottfried, here's some more math numbers for you.>> AMAT sales for '98 were $4B Shares out in '98 were 1.512B share (equivalent after 2 splits) Sales/share were $4B/1.512B sh = $ 2.64 / sh Lowest price was $5.8 in Sept '98 Best [lowest] PSR was $5.8/$2.64 = 2.2 Sep '98 Note: the revenue in 98 was 4.04B, in 97 was 4.07B and in 96 4.14B. Income from operations went from 600M to 500M to under 300M from 96 to 98. Shares increased slightly over that time. The stock was probably ~$3 in 96 on the same revenue, so lowest PSR to 96 is maybe 1.1. Ketan