Applied Materials, Inc. (NASDAQ:AMAT)

I think this stock has gotten ahead of its self. Always runs up before earnings but I do not see the numbers to justify this run.

good quarter. strong outlook. dividend increase.

Magic formula pick

Nasdaq in maximums.

Thirteen billion dollar Applied Materials develops, manufactures and sells a wide range of manufacturing equipment used to fabricate semiconductor chips. It pays a nice 3% yield, but earnings crashed last year and while P/S and P/B ratios are one plus, P/E is a sky high 125! Up 5% YTD, the stock (NASDAQ:AMAT) peaked last year on a $19.93 double-top and the EMA trend is DOWN.

technicals

alex dumortier 6/14/11
7 cheap stock trades

options

3D NAND is going to be important in the coming years.

What TMF Ditty said. Plus they raised the dividend almost 9% last year.

Strong diverse semiconductor player with good p/e, cash, div and upside

Top 30 companies with a minimum market cap. of 10000 million

Too good of a stock to be undervalued at $11.02

Morningstar 5 star fair val 19

I see:

dividends that are increasing,

outstanding shares that have been falling over the past year (they're buying back shares, which is great for investor value),

dividends that are low relative to earnings,

high cash and short-term investments (and total current assets) relative to total current liabilities

One bad year in 2009, from which they seem to have bounced back strongly.

About to buy now for my IRA as a long-term dividend play.

trading at well under 2x revs, and around 10X earnings, this is on the extreme low end of this stock's historic ranges. Yielding 3.4% is just getting paid while you wait to be right. This industry cycles every 3-4yrs. This company is 50% bigger than it was 10 years ago, but it is cheaper. Go figure.

Long term hold - good buy:
Pays a dividend
Strong Balance Sheet
Acquisitions in past few years appear well thought out. Concern here would be that AMAT is investing in M&A rather than organic growth. Appears to ok though.

The mobile device boom is only going to continue and AMAT stands to benefit. Now that management is once again focusing on the more lucrative end of the business and putting less into solar technology, margins should begin to increase again.

Solid balance sheet, exposure to flat planel, solar panel and semi conductor space with growing share of mobile tech. Dividend pays ot wait, the value here should weather a storm (when the next one comes). The Varian acquisition is causing some indigestion. I like, I'm buying.

good cash flow
low debt
Div
5 star