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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Fred Levine who wrote (3124)	9/20/2002 10:12:01 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Fred, I would agree with everything you said, but would add one more. If the current poor market environment continues, companies with large expenses and bloat will be forced to choose between overly generous compensation to management and the desire to remain competitive through increasing capex. Foregoing the latter while keeping the former intact is a breach of fiduciary responsibility IMHO. Brian

To: Fred Levine who wrote (3124)	9/20/2002 10:53:21 AM
From: Cary Salsberg	Read Replies (1) \| Respond to of 25522

Many CEO are not trying to "lock in any ST profits", they are trying to stem losses. It is not "dumb" to slash capital expenditures when there is overcapacity. Most of the "dumb" behavior occurred during the years up to and including 2000. I never considered that there was an "if" or "when" question. It has always been "when". You are correct to look to new products. That is where end user demand will be generated and in many, possibly most, cases there is no over-capacity for the production of these new products. I don't agree with the importance you place on competition. I think that new technology (300mm, etc.) is being deployed prudently during this down period. Foundries and consortiums and INTC, which represent most players, have been developing new advanced production lines and they are more careful to increase production capacity in these advanced lines in line with demand for advanced products. That is why orders go up and down and Taiwanese foundries have slid orders one or two quarters.