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

To: Proud_Infidel who wrote (9527)	10/25/1997 11:11:00 AM
From: Stu Bishop	Respond to of 70976

Brian, You asked where I got my numbers, specifically $1.73 earnings. This comes from the last six months and next six month estimates. My opinion is this is a better approach to valuing a company's shares. It balances past/present performance and future expectations. Regardless, I think our discussion about AMAT fair value has been overcome by events. I had said, roughly, that AMAT is worth low-mid $40s now and mid-high $50s in a year. I don't consider this bearish at all, just cautious. You and others have been more optimistic. Now, the stock is definitely undervalued. I originally bought at $25 in July 95. Fortunately, I sold half of my holding a few months back before the recent debacle (before the peak too). I consider it a blessing that over two years later, I was able to double up at only $6.50 more than my original purchase. Whereas in 95, I bought just prior to a peak, I think in a few years from now, I'll look back and smile when I remember buying AMAT on 10/24/97 at $31.5625. Even if my more conservative estimates come true, the stock will double by the end of 98. BUY! BUY! BUY! BUY! BUY! BUY! BUY! BUY! BUY! BUY! BUY! BUY! .....you get the idea. Thank God for yesterday! Stu B.