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

To: Lizzie Tudor who wrote (3863)	11/8/2002 8:45:54 AM
From: Fred Levine	Read Replies (3) \| Respond to of 25522

Liz-- I thought that CNBC and others misread the layoffs and that you were correct in your analysis. Just before announcing the layoffs AMAT announced that it was increasing its R&D expenditures -- hardly a move that represents LT pessimism. However, they also announced that they were developing equipment before they had orders, something they never did before. My conclusion, counting the layoffs, is that they were making a leaner meaner co.; one that was taking a predatory leap to seize market share if there is an upturn. Without an upturn I see two scenerios; one is huge losses with unsold equipment, and the other is that they have faith that the equipment they are creating will increase productivity so substantially that it will be compelling to buy. Given that I am a tech illiterate (and rely on Gottfried to teach me how to copy news), take it for what its worth. However, I just don't see the pessimism of increasing R&D. fred