Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (1937)	2/12/2002 9:16:51 PM
From: Donald Wennerstrom	Read Replies (2) \| Respond to of 95965

Hi Bob, First, thanks for all your well thought out posts. You always have some good points to make. Your comments are always well appreciated by me. I know you have been investing in Cohu for a long time. I hope it continues to do well for you. I listened to the AMAT conference call today. I thought the execs did a good job in presenting the data and answering questions, especially Jim Morgan. He made several good observations about the business and why he expected a better market from this point forward. <<One surprising key is: with a small increase in orders, a large increase in profits will be generated - These companies are all geared for running on fumes.When a gallon of orders hits - it creates horsepower fast.>> In the conference call this point was made several times. Right now, AMAT is running very "lean and mean". Increased business should greatly improve the bottom line. <<It seems to me that a huge company like AMAT may well have some weaker sectors that carry some overhead over to those niches that are in higher demand.It almost must be harder for an 800 pound Gorilla to remain profitable compared to a pure play small company that may be more concentrated in a sweet spot.>> Here I think Morgan did a great job. He pointed out that much of the unused capacity, sitting idle today, will never be profitably used again. What is needed is the newer 300 mm, copper, technology and presently that is only 5 percent of overall existing capacity, but it is being 80 to 90 percent utilized today. As chip demand goes up, new modern equipment will be required to produce those chips(smaller line widths, copper interconnects, etc). Morgan said AMAT had been working hard to maintain their R&D, and get their production house in order to be able to "ramp up quickly" to quickly supply the new equipment when their customers place the orders. Much of the "older" equipment sitting idle today is not up to the task. Morgan said that AMAT is "ready to deliver". Don