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: jtechkid who wrote (19418)	5/13/1998 10:21:00 PM
From: miklosh	Respond to of 70976

<...whats good for amat is good for the industry.> Lately it seems like investors and funds are chasing after sector leaders to the exclusion of second tier co's. MSFT and CSCO, continue to trade at higher and higher pe and ps ratios relative to their peers.Perhaps this mentality is now spreading out into the semi equipment co's, where the general perception is that while indeed the downturn is far from over, AMAT is "the" place to park your $ until the unpredictable yet inevitable upturn arrives. That was today; tomorrow, who knows.. Personally, I think that in light of the revised earnings forecast, AMAT looks more overvalued (on pe ps) now at 39 than it did in the 50's last fall. After yesterdays cc, some predicted a big drop today, so instead we get 39 1/2 and a triple top on strong volume. I've never shorted into this kind of strength, but put options are looking like a reasonable insurance on my long position, or maybe I'll refinance the ranch and just go long on some conservative value plays, like KTEL,YHOO...or the makers of Maalox.<g>