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

To: BWAC who wrote (12136)	11/19/2004 8:56:00 AM
From: matt dillabough	Read Replies (2) \| Respond to of 25522

Goldman Sachs downgrades AMAT and AEIS, cuts Semi Equipment to Cautious from Neutral : Goldman Sachs downgrades the Semi Equipment industry to Cautious from Neutral, as they expect the stocks to make new cycle lows, driven by continued disappointing fundamentals over the next several qtrs as the semi equipment industry corrects for the excess manufacturing capacity that it built during the upturn. While the bulls are calling for a cyclical bottom in early 2005, firm's supply/demand framework points toward another several qtrs of deteriorating business conditions. Firm believes that as DRAM prices begin to decline in 2005 and more DRAM capacity comes online as the significant orders placed in 2H04 begin to ship, DRAM orders to the equipment co's will be the next area of fundamental weakness. Firm downgrades AMAT and AEIS to Underperform from In-Line.

To: BWAC who wrote (12136)	11/19/2004 10:19:52 AM
From: Kirk ©	Read Replies (2) \| Respond to of 25522

RE: "You'll notice Reained Earnings went up by $1.350 Billion, yet Stockholders Equity as a whole only increased by $1.200 Billion. Paid in Capital decreased by $150 Million. There's part of the money for the option "entitlements"." But that is almost EXACTLY what I said when I made my first post hence my wondering what you were telling me I was missing or not understanding. I calculated $160M vanished with the most likely culprit "insider option entitlements." You stated to talk about depreciation and other uses of cash and I asked what that adds to the understanding if the stockholder equity contains all this? I believe we have shown that backing depreciation out of the income statement to see how much cash was generated or consumed is an interesting exercise but not needed to calculate if option entitlements are large or small. I think this is a great discussion as the more of us that REALLY understand what is happening, the harder it will be for our employees (remember Splinter works for ME, not the other way around since I own shares in AMAT) to skim cash from the cash drawer when us OWNERS have our backs turned. Kirk