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

To: Jacob Snyder who wrote (26715)	11/25/1998 5:03:00 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 70976

Jacob: I may have been right but you have true class. I am neutral to somewhat bearish short term on these large cap semi equipment stocks including AMAT. I see investors as far too optimistic about this sector and the market overall. I see valuations as stretched in the market overall. The internut craze is indicative of the most incredible speculation I have ever seen in this market. The Fed., despite its best intentions, has created a bit of a monster in the market which will weigh heavy on their decison to lower interest rates in the middle of December. The key to thinking about this sector for me is to ask oneself how much of this move has been attributable to the overall market move and how much can be attributable to improving fundamentals. The fact that both a perceived change in fundamentals and a market filled with panic buying occurred at the same time confuses the analysis. I do not think that portfolio manager move to catch up to the index and to hold the likes of AMAT can be underestimated. It took quite a bit of effort to push AMAT over $40 and it only came on the day the market made new highs. I would be extremely cautious in this sector, especially in the large caps if one is long. Happy Thanksgiving