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

To: michael97123 who wrote (17896)	8/10/2004 6:37:38 PM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 95656

<<As an aside if we compared csco, amat, intc with the ges of the world how do the valuations compare?>> I don't have the answer to that - it would take some work, but one thing is that they are all making good money. <<Maybe the big cap techs are not being valued as tech any longer or have they become value plays at this point?>> I'm not sure who knows the answer to that question - maybe there is no real answer except in the eye of the person doing the evaluation. Don

To: michael97123 who wrote (17896)	8/11/2004 2:06:08 AM
From: BelowTheCrowd	Respond to of 95656

> Maybe the big cap techs are not being valued as tech any longer or have they become value plays at this point? < Why should a company whose business is technology be valued any differently than any other business with otherwise similar financial/growth characteristics? Simple answer: They shouldn't. It's understandable that there would be a premium attached to growth, but the bigger cap tech companies are hitting the wall on hypergrowth. These days many of them are being valued in the same way as lots of other companies that are growing at more modest rates. The problem, I think, is that the market is oversimplifying, and attempting to apply a single model to many different companies with different individual characteristics. DELL, INTC, MSFT, CSCO are now the major players in stable businesses with predictable but no longer astounding growth and are being valued as such. Many other tech companies deserve much bigger premiums, some deserve less. But I think the days of a "tech premium" for anything and everything in the business are over. MSFT holders are beginning to get the point, and the company's management is increasingly honest about this. I think the same will happen slowly at many other companies.