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Politics : Formerly About Applied Materials
AMAT 228.68-2.7%Nov 11 3:59 PM EST
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To: Ian@SI who wrote (30688)5/28/1999 8:23:00 AM
From: Jerome  Read Replies (1) of 70976
 
The relationship between DRAM prices and AMAT's prosperity are nothing more than dust in the wind. Here's why.There is a better business relationship that explains it all.
The price of wheat and the retail cost of a loaf of bread.
If wheat were free (DRAM) the price of a loaf of bread would not change one cent. (manufacturing, distribution and marketing expenses would still be the same)

Wheat prices are at a twenty five year low yet bread is still being baked at record amounts.

Farmers complain that wheat is not profitable at today's prices yet almost every year record amounts of wheat are planted and harvested and many farmers go out of business.

If wheat prices go the zero (DRAM) we would still need to make it by the most efficient manufacturing process to make bread.

Every couple of months someone predicts a a strong price rebound in both wheat and DRAM.

AMAT and the bakeries are still making money no matter where the base commodity price goes.
Other relationships of this sort are gasoline and the price of cars.

I'm not a techie, I'm an empirical philosopher. As far as tech goes most days I don't know my back end from my front end, although many on this thread discuss the matter routinely.

It's Friday morning and its time to stir thing up.

Jerome

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