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

To: jtechkid who wrote (22943)	8/12/1998 8:45:00 PM
From: akidron	Read Replies (1) \| Respond to of 70976

jtechkid.... the coming writeoffs will use a great deal of the $1.6 billion cash.... my estimate is $250 million of development costs for 300mm another $150m for layoffs, and I expect at least -$200m in cashflow from opps next Q..... 29-36 is IMO 60x next years earnings.... NO WAY... not even this protected beast.... We will get to buy at 20.... FYI I don't think 300m will happen ever.....

To: jtechkid who wrote (22943)	8/12/1998 9:18:00 PM
From: Edwin	Read Replies (2) \| Respond to of 70976

jtechkid, Your last post had a pretty good analysis of the situation at AMAT and how Morgan may be thinking. I think the street loves AMAT and will not penalize it to much. Everyone is waiting for a turnaround and AMAT will be the place to be. AMAT is the 800 lb gorilla. AMAT may possibly be taking market share away from other companies during this downturn. I think alot of people shorted this stock in the anticipation of poor earnings. Everyone knows that earnings and the outlook is bleak until at least the second half of 1999. I doubt if fund managers will want to miss out on the huge rebound when it does occur. I think it is smart to dollar cost average on this and other good companies like KLAC, NVLS and TER. I doubt if AMAT will go below 28!