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

To: Cary Salsberg who wrote (10189)	6/7/2004 11:40:19 AM
From: Kirk ©	Read Replies (2) \| Respond to of 25522

RE: "...they willing to pay $1 for a smaller piece?" No! If the pie were cut into 18 pieces (makes the math simpler), they would be willing to pay $1 for 3 pieces. More willing or less willing depends on the perceived convenience or lack of same of 3 pieces, i.e. harder to eat, easier to share, easier to save some for later. You respond as if you believed the market was rational. This is a mistake. If you work with enough real people (non engineers and accountants) you will see that most are frickin clueless about Market Cap. They base their decisions in part on how many shares they can get of a stock at a certain price range. If they get a $1,000 bonus they won't consider paying $100 a share for 10 shares of AMAT but they will often pay $25 for 40 shares of AMAT. Of course, this hardly matters for AMAT as the percentage of clueless folks buying and selling the shares is a tiny percentage of the float and daily trading volume. But... apply it to a stock like CACS.... Kirk