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

To: Scott Brooks who wrote (12748)	12/8/1997 12:22:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

the recent downward move has been much deeper than for others, AMAT included Fundamentally speaking though, KLAC had much more to lose than others in the group. It's valuations prior to the fall were even richer than AMAT's. As of now, its TTM pe is stil higher than that of AMAT, though not by much. I cannot speak of its forward pe since I do not know what the projections currently are. But barring any mgt slipups or erosion of mkt share by one of these great companies, I do expect them to trade in tandem for most of the time. And if one should outpace the other, I expect the second(AMAT in this case) to rise to match the level of KLAC, or to have KLAC retreat to AMAT levels. Hopefully we are now witnessing greater confidence that the asian contagion will not be as devastating as previously imagined. Believe it or not, people will still buy IC's :-) Regards, Brian

To: Scott Brooks who wrote (12748)	12/8/1997 4:54:00 PM
From: Math Junkie	Read Replies (1) \| Respond to of 70976

<<I would hate to think that the move is on the basis of an relatively insig. buyback announcement (IMO)>> Perhaps such announcements should be interpreted in the same vein as reports of insider selling - namely, when the executives are selling, it means they think the stock is expensive, but when the company is announcing additional buybacks, it means they think the stock is cheap. Many semi equip executives were selling stock in August, and as we all know, there was one huge correction in October, so I think we ignore the implications of such reports at our peril.