Applied Materials No-Politics Thread (AMAT) Message Board

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Technology Stocks : Applied Materials No-Politics Thread (AMAT)

AMAT 260.22

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Dec 23 3:59 PM EST

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To: etchmeister who wrote (17210)	1/15/2006 10:19:13 AM
From: robert b furman	Read Replies (1) of 25522

Hi etch, G's charts seem (to me),to be showing this incrementel,cram in another machine, vs wholsale build new fabs and get market share facility expansion. This is a measured rational investment discipline. The primary benefit is it prevents excess inventory and the margin reduction effects of too much capacity. Once inventory exceeds demand - it is all but impossible to slow down the production that created the demand. Price cutting can push some purchasing -but ultimately supply must follow end user demand. To me this expansion cycle has been much more orderly sane and will be much more rewarding financially. With any luck we can iron out the cycles to match those of the economy and not those of boom/bust production swings. It is much like running a marathon.Same steady effort and time splits always ends up in a personal best time. It is the go out hard and hold it strategy that ends up being a crash and burn result. Bob

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