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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (4783)	4/26/1999 4:33:00 PM
From: Justa Werkenstiff	Read Replies (2) \| Respond to of 15132

Wally: Thanks for the AMAT article: That article states in part: "As chipmakers continue to transition to smaller line-widths Applied Materials will be a big beneficiary due to its leading edge products. Concerns over PC demand and the sustainability of the improved book to bill numbers have caused the stock to essentially tread water since the beginning of February. As a result Applied Materials' shares are valued 29 times forward estimates, which will expand rapidly once investors become convinced that the recovery will last." This misses the mark in my opinion. The concern is not PC related anymore. Unit demand is just fine and above projected trend at this point. DRAM pricing alone is the concern. DRAM account for around 40% of capex in this sector at this time. One need only compare the MU chart with the AMAT chart to see the problem.