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

To: akidron who wrote (19928)	6/5/1998 3:03:00 PM
From: Dennis	Read Replies (1) \| Respond to of 70976

thanks for the insight, patience as always. Wait for the turn around.

To: akidron who wrote (19928)	6/5/1998 6:21:00 PM
From: Proud_Infidel	Respond to of 70976

aki, Re:WHY IS AMAT THE BEST IDEA WE CAN FIND.... Assume for a second AMAT hits a peak to peak increase in revs of 2.5X,(a number thrown out by Cary Salsberg I believe and historically close to actual increases in capex) and a base eps for FY98 of $1.30. Using this guesstimate, we arrive at an eps of $5.oo sometime during the next cycle peak which should occur sometime in the 2002 area. <Insert opposing viewpoints here> $1.30 to $5.00 over a 4 year period is an increase in eps of 40%+ annually. AMAT currently trades at 14X FY99 and 20X FY98. Aki, please find me a company with this kind of eps growth with these kinds of multiples in this market. BTW, this assumption does not include (1)any margin improvements which I expect to occur which could conceivably put NM's in the 17% range, and (2)any market share gains. BK