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

To: Jacob Snyder who wrote (22220)	7/28/1998 5:35:00 PM
From: Henry Eichorszt	Read Replies (1) \| Respond to of 70976

NEW YORK (CBS.MW) --ÿTechnology stocks extended their selloff Tuesday amid rising concerns about market fundamentals. Semiconductor stocks advanced, but a bleak forecast from equipment maker Lam Research may depress that group Wednesday. Jul 28/98 4:30 pm ET Lam's gloomy outlook A bleak forecast by a leading chip equipment maker may pressure the semiconductor universe Wednesday. Lam Research (LRCX) closed up before posting an operating loss of 5 cents a share, a penny better than analysts' expectations. However, the company said the chip equipment industry is currently experiencing its worst downturn in over a decade and it expects its business to suffer through the next several quarters. Chip-gear manufacturers performed well prior to the announcements. KLA-Tencor (KLAC) jumped 1 11/16 to 28 15/16 after beating analysts' estimate for the fourth quarter. Applied Materials (AMAT) also rose, up 1 3/4 at 32 7/8 and Novellus (NVLS) rose 1 3/4 to 38 5/8.

To: Jacob Snyder who wrote (22220)	7/28/1998 6:19:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Jacob, Don't get me wrong. I love INTC. There are few cos in the world in a better position(both product wise and mgt wise) than INTC currently is. Betting on AMD is IMO entirely foolish and a gmable at best. However, I believe INTC currently accounts for only ~5% of all chips sold(talking Volume, not $$). A company that holds 5% of the entire market for IC's, yet is priced at 1X FY98 revs for the entire semiconductor industry! If this were to be applied to AMAT, they'd currently be trading at about $78(using FY98 revs of$27B). I am not arguing it should be trading there at the moment. However, IMO AMAT does not get the respect it deserves largley b/c of the cyclicality of the industry. Hopefully fund managers will want to own this stock once the upturn begins. BK