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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Cary Salsberg who wrote (9286)	10/23/1997 8:38:00 PM
From: Darin	Read Replies (1) \| Respond to of 70976

As far as the currency "crisis" goes, a was under the impression that most large companies nowadays that generate alot of their revenue or buy alot of their equipment overseas hedge against currency risks by participating in currency futures markets? Ie, I recall a while back that there was some concern over one of IBM's quarters and how the strong dollar would affect them... in the end they were relatively unaffected since they had hedged against foreign currency crises... Whether or not a Taiwan Semiconductor or the likes also does this is unclear to me. Just some thoughts, Darin

To: Cary Salsberg who wrote (9286)	10/23/1997 9:51:00 PM
From: 16yearcycle	Respond to of 70976

Cary, I am curious if this drop has caused you to consider adding to your positions.AMAT is trading at about 16.8x 98 fiscal projections. AMAT is selling at less than 3x next years sales,also. KLAC has also gotten whacked despite beating estimates handily. Even if E end up at 1.80 next fiscal year,business should pick up and bring us up to 2.50+ in fiscal 99. I know projections seem weak after recent market action, but "market action" may not be a reflection on business after all. What do you think? TIA Gene

To: Cary Salsberg who wrote (9286)	10/24/1997 10:15:00 AM
From: John E. Rylander	Read Replies (1) \| Respond to of 70976

You wrote: It cost more in local currency to buy US semi tools, but the income from the chips they produce will produce more revenue in local currency. We need to know where the chips are sold and whether higher prices in the Asian markets due to currency devaluation will cut local demand for the products containing the chips. ----------- Another question: will the curency problems have any significant disparate impact for AMAT and other US companies v. their foreign competitors? (And with the dollar the biggest kid on the block, it probably won't be a helpful disparity.)