Applied Materials has a bad Q2

But what about the rally? Even though markets were down yesterday, is Applied Materials nevertheless a buy based on the notion that all the bad news has been discounted in?

The 52-week low is currently pegged at $7.80. Well, as of the close of trading on Wednesday, Applied Materials was priced at $10.99. Also, Applied Materials is in the green on the year-to-date frame. This has been the story for a lot of stocks.

I cannot, however, get myself to consider this tech company for a trade. And I would not enter a long-term position, either. The numbers just don't give me any confidence.

Yes, Applied Materials will probably rise again at some point. Again, though, if you buy now, you're basically buying on speculation that the rally we've seen in the markets is for real and that a new bull is running things on Wall Street. Maybe that's the case. But I think there might be better ways to play tech if you honestly believe such a thesis. There's Microsoft (NASDAQ: MSFT). There's Apple (NASDAQ: AAPL). There's Hewlett-Packard (NYSE: HPQ).

I'm not saying I'd buy any of the above at the moment. I'm just saying there are probably better alternatives out there than Applied Materials. For me, looking at other companies would be the way to go because of the fundamentals involved. You can always check in with Applied Materials at a later date.

Disclosure: I don't own any company mentioned; positions can change without notice.