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

To: Debt Free who wrote (22790)	4/1/2008 9:10:59 PM
From: allatwwk	Read Replies (1) \| Respond to of 25522

There is nothing about AMAT that suggests it is expensive. Its PE is below 20. It has over 10% of its market cap in cash. It is #1 in semi eqpt and #1 in display eqpt. Even with softness in ICs, the display cycle is hitting and should mitigate some of the semi issues. Companies like Texas Instruments which had committed to foundries are finding out that life isn't always greener. So you may see some larger players getting back into IC mfg as the foundry model isn't all that they want. The next up cycle may be a real big one. AMAT has made huge investments in solar without much in return yet. They have already taken the largest order in company history -- equal to 20% of their annual revenue -- before delivering a single major tool. In addition, the solar business is in a strategic sweet spot. It is part of the solution to global warming, energy independence, value added US job growth and cleaner air. Politically, AMAT is in a great place, especially in an election year. Lastly, the solar biz is part of a multi trillion dollar food chain, easily 10x the size of display and chips combined. There is lots of headroom. If AMAT had not invested in solar, its likely they would have $5+/share in cash and a PE under 15. AMAT's share price has been remarkably confined in its trading range for a tech company in highly cyclical business. A breakout to the upside could go a long way. A very long way ...