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

To: Paul V. who wrote (19147)	5/4/1998 11:23:00 AM
From: Sparky65	Read Replies (2) \| Respond to of 70976

According to my information AMAT is trading at a PE of 19. KLAC is trading at a PE of 40 and it looks like NVLS doesn't even have a PE. Is there a reason why AMAT is trading so low compared to its peers? I realize that the market is in a downturn. But, semi's are not going to go away. And, isn't AMAT considered the industry leader? With a PE of 19 for a company that is considered the leader, is there something going on with this company that is not well known?

To: Paul V. who wrote (19147)	5/4/1998 1:21:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Re: Value Line Estimates of $3.35 Typically, peak to peak earnings should be in the range of 2.5 times prior peak earnings. If this is the case we should be looking for AMAT to earn roughly $5.00 sometime in the next few years. This is of course, not taking into account (1)market share they may have stolen to help add to the bottome line, (2)other markets in which they now participate(metrology) which should add to the bottom line, (3)or the fact that AMAT mgt. has an internal goal of 17%+ NM's, margins which are higher than last cycle peak. If these three should come to fruition in a low inflation, low interest rate environment, AMAT will most definitely see earnings higher than $3.35 and prices higher than $117. Significantly higher. Regards, Brian