Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John E. Rylander who wrote (9596)	10/26/1997 12:50:00 AM
From: davesd	Respond to of 70976

John , I agree with you that alot of the time the markets are based on opinions and perceptions, fundamentals get tossed aside... In Feb 1996, AMAT had a record year for revs, earnings and backlog, the stock was trading in the low 20's (after current split). AMAT has yet to match that quarter, yet the stock had been trading at over $50 recently and is now $33, which is still over 50% higher than in feb 1996, yet the current earnings estimates for this quarter are lower today than in Feb 1996. Once the slowdown had beocme apparent in 1996 the stock traded down to $12. And only when there was an indication of an upturn did the stock start it's up move. So how does one assign a value based on fundamentals of the company, history, and taking into account the sort-term and long-term potential???? is $33 the right price??? I wish I knew.... It seems that at this point all the buyers last week expect no slowdown. Several analysts are bullish on the growth in 1998. How much does the stock move if they are right or if they are wrong....it all depends on how wall street spins the news after the conf call?? dave