|
The Motley Fool Discussion Boards
|
Previous Page | |
|
Investors' Roundtable / Rule Maker Companies |
||
|
URL:
https://boards.fool.com/ill-give-the-ultimate-wishy-washy-answer-12290779.aspx
|
||
| Subject: Re: Help me. Is AMAT a RM? | Date: 3/28/2000 7:44 AM | |
| Author: rundwp | Number: 5856 of 8329 | |
|
I'll give the ultimate wishy-washy answer. "It depends" As for competitors, try Novellus, KLA-Tencor, Teradyne, and if you can can get the relevent info, Nikon and Tokyo Electron. You will probably find, as I did, that Applied Materials has a distinctly superior balance sheet. What prevents it from being a Rule Maker? The flow ratio is too high, 1.5-2.0, which is actually quite good for this industry. Gross margins run around 50%, so it hovers just around Rule Maker criteria. (The story is similar with net margins). Debt is not a problem. In addition, the volatility and cyclical nature of the business is a concern, and the industry is not for the technically faint of heart. AMAT is clearly the Rule Maker in the semiconducting equipment industry, even if AMAT probably falls a little short in the overall Rule Maker criteria. But as you can probably guess, I think it is a great investment, and am indeed long on AMAT. -rundwp |
||
| Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us | ||