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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?


To: Big Bucks who wrote (33782)1/19/2000 2:35:00 PM
From: Big Bucks  Read Replies (2) | Respond to of 70976
 
Lots of rampant speculation for forward earnings/sales. What
happens if AMAT just "meets" their numbers. It has been
typical in the past for rising interest rates to dampen new
fab expansion due to the cost of borrowing to build/expand.
A $2B+ fab expansion is a huge investment, with huge
interest payments, and it will take at least 10 years to
pay off/depreciate that kind of loan, add to that the operating expenses required to run/sustain a fab and the
profitability picture for the semi's becomes questionable,
IMHO.

Just my opinion, any comments/opposing views welcome.
BB