We also added to our position in Applied Materials Common (AMAT), which was discussed in last quarter's letter. The share price has been weak of late owing to a deteriorating 2012 earnings outlook. Demand for semiconductor capital equipment appears to have been negatively impacted by the slowing global economy. Nevertheless, Applied Materials' financial and market positions remain strong, and the shares were purchased at an attractive price of about nine times 2011 earnings.
From Third Avenue's third-quarter letter, by Ian Lapey, portfolio manager.