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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: NikhilJog who wrote (48073)	5/22/2012 3:10:32 PM
From: Dennis 3	Respond to of 78702

I agree what is the catalyst here? They bought varian, a business they got out of in 2008 and now they are back in it. Are they running out of ideas since the other industry they service is in a downturn?

To: NikhilJog who wrote (48073)	5/22/2012 4:24:24 PM
From: Spekulatius	Read Replies (4) \| Respond to of 78702

re AMAT - i don't see an immediate catalyst. I did like their last earnings report and they outlook is not as bad as I thought. So it's reasonable to buy a position at this price from my point of view. My sense is that these semi stocks often turn up before good news is widely known (due to what I call Silicon valley information leakage) , so it is in my opinion to buy now close to multi year lows. I think the Varian buy is an example of questionable capital allocation and it is one reason the price is low, but I think it will be accreditive to earnings eventually. Semi equipment is not a growth industry any more but it is an industry that rewards the largest players with better returns and AMAT is the largest player.