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

To: davesd who wrote (13791)	12/22/1997 7:22:00 PM
From: Kirk ©	Respond to of 70976

You must remember that one of the big reasons that AMAT went to 10.875 for a p/e of 6 in summer of '96 is that many in the market felt there was a big semi recession comming and that AMAT would be having layoffs inorder to keep earnings positive rather than negative. The market changed and AMAT's p/e went up when people started reordering semiconductors again. This time it seems the uncertainty is discounting future earnings gains and paying a reasonable p/e on past earnings. My $0.02 worth suite101.com Kirk out

To: davesd who wrote (13791)	12/22/1997 8:39:00 PM
From: Proud_Infidel	Read Replies (3) \| Respond to of 70976

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To: davesd who wrote (13791)	12/23/1997 9:52:00 AM
From: Gottfried	Read Replies (1) \| Respond to of 70976

Dave, >When you look at % you are assuming that $54 was a justified valuation...some will disagree.< I have to agree with you. Referral to unjustified tops is common, though. I've seen it with IOM, which was once pushed up to about 60. That was a bubble with no foundation at all. We're on safer ground when we reference from the bottom (or near it), even though that might be unjustifiedly low. The top may be due to irrational exuberance and I would not bet it will repeat. GM