Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 326.65

-0.6%

10:57 AM EST

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To: Ian@SI who wrote (32758)	10/8/1999 6:51:00 AM
From: Duker	Read Replies (1) of 70976

Ian, I realize you are just echoing what The Market is probably thinking ... ... but, what are these people thinking? The mythical spot DRAM market is about as deep as an Instinet quote on Berkshire Hathaway A ... To use Micron as an example ... 90% of their business is transacted on a contractual basis with OEMs. These contracts have a duration of more than a nanosecond and reflect the 'true' price people are willing to pay for their product ... ... I would argue that the spot market is just the pricing at the fringe (don't want to use the term margin ... because we all know that prices are determined at the margin) of the industry ... I liken it to The Antique Roadshow (on PBS) ... some appraiser looks at you grandfather's antique condom ... tells you how interesting and rare such an object is ... and assigns a value of $1000 ... that is what it could bring 'at auction' ... unfortunately, when you try to sell the two cases of them that you have in the attic ... you only get a fraction of the price ... I would also argue that the DRAM manufacturers would love $14 pricing for the rest of the year ... --Duker

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