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

To: Lizzie Tudor who wrote (7346)	11/29/2002 1:35:25 PM
From: BWAC	Respond to of 95487

<this cash situation casts a thorn into the overvaluation argument and I haven't heard any adequate rebuttals to the contrary> And you won't. Its not listed on the chart and its never mentioned by those wanting you to sell.

To: Lizzie Tudor who wrote (7346)	11/29/2002 5:39:56 PM
From: The Ox	Read Replies (1) \| Respond to of 95487

Each company should be looked at as a sum of the parts that creates a whole. Industry, product(s) produced or services rendered, market cap, price, diluted # of shares, sales, expenses, cash flow, profits/losses, debt+debt structure, NAV or net tangible assets, market share, customer base, intellectual property, management, experience/history, etc. All of these and many more data points are necessary to get a reasonable picture of the company. Too often terms like Fair Value get tossed out by people who are using a limited subset of the whole to justify their opinion on the stock. This is why each sector in the market has it's own core subset of values that are used in an attempt by analysts or investors to justify their "call". Buy/Sell, short/long, market under/over perform, etc. When Fleck and other bears put out "Fair Value" on AMAT at $6/share (which I read in an article this morning), they conveniently discount certain data points which won't (or can't) hold up to their "standard" for a valuation "call". Similarly, when the bulls pound the table on a stock, they will include valuation data points that the bears have already discounted or that the bears feel is something that should not be part of the valuation "standard". Now add in the variable multiplier called "what the future will bring". For the bears, the multiplier is a fraction, which they claim will reduce share value. The opposite holds true for the bulls, the multiplier is greater than one, as the future will greatly improve the company's stock price. These issues are why a stock can sell at no P/E, P/Es that are "in-line" with their expected growth rates or "astronomical" P/Es. Earnings are a single data set within the context of the whole company. This is why Price to Sales or Price to Earnings is often a terrible single valuation data point for a someone to "toss out" as a justification for their investment call.