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

To: michael97123 who wrote (66170)	9/21/2002 3:00:13 PM
From: XBrit	Respond to of 70976

Point is, KLIC had an extremely low PE at the height of the 2000 market boom. MUCH lower than say AMAT. Many people fell in love with the stock for that reason (including me, although not forever). As in the case of KLIC, Low PE's may indicate an intensely cyclical stock which has brief periods of high profitability and growth followed by long periods of poor business performance. I suspect homebuilder stocks have that characteristic when viewed over many years, say 30 years. Because of historical experience, the current profits are being discounted by forward averaging over many years of poor results after this boom ends. If you believe this is a new era for the housing market, rather than an extreme example of a cyclical boom, you may want to consider buying homebuilder stocks. The same would have applied to buying semi equipment stocks in early 2000.