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: Paul V. who wrote (10557)	11/8/1997 9:38:00 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 70976

I did the same as you, for exactly the same reasons. I'm very long this stock; didn't sell any even though I thought it was overvalued this summer; added more a few days ago; cost basis is 28 overall. I will add more on every dip. Once some of my stock gets over 18 months old, I may sell some if the euphoria and PEs get too absurdly high. But if I miss a peak, it doesn't really bother me, because I am 100% confident there will be another higher high in a year or two. In regard to comments about IBM entering the semi-equip industry:they spun off Lucent precisely because competitors wouldn't buy their equipment. IMO, it is simply impossible for any company to make both chips and the equipment to make chips. There are no examples of this that I know of, and no analagous situations in other industries. Of course, governments can always distort the market with large subsidies, and get companies to do absurd things. So, the Europeans may entice one of their semi companies to enter the equipment industry. If they do, the only result will be an inefficient competitor confined to Europe. The Asian and American semi industry won't buy from them. This is no threat to AMAT. I can't think of an industry that has higher barriers to entry than semi-equip. I can't think of an industry that is going to grow faster than AMAT's, except maybe communications equipment, software, or biotech. I agrea with posting your market position along with the opinion that backs it up. We don't need to state # of shares, but when and what type of position was taken will help greatly to detect inconsistencies and failed strategies, along with the successes. It will keep us honest.

To: Paul V. who wrote (10557)	11/8/1997 9:52:00 PM
From: Lester e.	Read Replies (1) \| Respond to of 70976

Paul you said a mouthful. My philosophy is to take investment action when matters you know about a specific company appear to warrant such an action. Buy the company, not the econoomy. Ask yourself two questions: l. Is this a good business run by good people? 2. Is the stock reasonably priced? There are few companies on the market today that meet these requirements. I think AMAT does. Do you know any company that has better prospects? Keep the faith. Lester e.