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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: shane forbes who wrote (5576)	5/27/1998 5:23:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 10921

shane, Re:The low end is around 18 - now to many the delta of 45% is big How do you arrive at $18? Even the most bearish forecast calls for eps in the $1.20 range for FY98. Your target of $18 would yield a P/E of 15 on this fiscal years earnings, a fiscal year BTW which is more than half over. Compaines with 1/3 to 1/4 the average growth of AMAT are trading with multiples in the 40's(KO) and some with "growth" stories have multiples of several hundred points(YHOO). $18 would give us a PSR of approx 1.4. Do you really expect AMAT to trade at these levels when the entire sector is trading above these levels after having been eviscerated? exchange2000.com The SOX recently fell from the 320 range to the 260 range, not far from its 52 week lows. Given AMAT's dominance, I cannot fathom how people still expect it to fall to the valuation levels of 2nd and 3rd tier equipment companies. Brian