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Technology Stocks : Teradyne -- Ignore unavailable to you. Want to Upgrade?

To: Henry D who wrote (811)	8/25/1998 10:33:00 PM
From: Dave Johnson	Respond to of 1184

After the close today AMAT announced a loss and a 2000 person layoff!

To: Henry D who wrote (811)	8/27/1998 7:45:00 PM
From: Mason Barge	Read Replies (3) \| Respond to of 1184

<<I think TER sells at a bigger discount than KLAC and AMAT b/c of its market cap>> I'd add a couple of other factors. KLAC and AMAT both have more credentials in the "cutting edge" arena. KLAC is really kicking butt right now (although some of the butt being kicked is AMAT's!) KLAC and AMAT both have more visibility, KLAC due to its fast rise and coverage by Motley Fool, AMAT because it's so big and the industry a leader. Also, AMAT has a lot of diversification therefore safety from technological improvements at competitors, although TER is really attractive in the large amount of telecom work. And also, front end is likely to recover both sooner and faster -- when the industry needs fabs, orders are going to pour in for front-end equipment due to the longer book-to-delivery period. They don't order test until last. These two not so much as the stepper business, whose bookings are simply going to explode, all of a sudden, at some point in the next few years. I'm not cutting TER, which I think is a terrific company and a terrific value at this price -- just trying to explain the high PS of the other two.