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

To: Sarmad Y. Hermiz who wrote (14729)	5/3/2005 12:39:12 AM
From: The Ox	Read Replies (1) \| Respond to of 25522

I think we are seeing equipment ordering patterns slow slightly relative to the past. New fabs are still getting built but they are installing the equipment as demand for the installed processes build, instead of the old habit of overbuilding and hoping demand ramps. This eliminates some of the excesses we used to see in the past which is helping to smooth out the peaks and valleys. Add that many companies are still extremely cautious about the future and they are attempting to error on the side of a stronger balance sheet vs. the riskier option of higher capital expenditures. Whether or not the analysts are accurate about their predictions for next year or not is more then debatable and we debate it here all the time. I'm a little surprised by Carl's reaction, unless it was done to stir the pot. Imo, the most significant factor in this sector's recovery will be overall strength of the global economy. This is where we are seeing the bulk of the analyst community ratchet down expectations. I take it that Carl must be on the side of a major global slowdown, since he came in here as the analysts' champion.