Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 223.95

+1.7%

Nov 21 9:30 AM EST

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To: Tito L. Nisperos Jr. who wrote (9444)	10/24/1997 3:28:00 PM
From: Big Bucks	Read Replies (1) of 70976

Hi Tito, The full impact of Asian currency devaluations will cast a shadow over American companies selling products into those markets. Consider Intel who's margings are declining already, this likely means that their CPU's will not provide the most performance vs. cost of the CPU. Other American chip companies will also feel the pinch of decreasing earnings, this is the harbinger of lower chip sales and decreasing margins. If this is true,then there is less immediate need for more chip capacity expansion, thus the equipment manufacturers will also face declining sales and lower profits/margins for a year or so. All equipment manufacturers will be scrambling to maintain sales. My suspicion is, that as sales slow, the semi companies will go into an "austerity" mentality and reduce headcount and manufacturing capacity and become leaner and meaner. Any other "bad" news from the world markets will likely cause an additional market drop and AMAT could drop further into the mid $20's. Time will tell, we are currently in the range of the stock price that was prevalent in June, just before the summer run up. Regards, BB

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