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

To: Doug Fowler who wrote (22879)	8/12/1998 1:02:00 AM
From: Jon Paulsen	Read Replies (1) \| Respond to of 70976

Applied reported 13 cents earnings - with the one time 6 cent restructuring charge - and announced that next quarter they are expecting between 2 and 5 cents in earnings BEFORE the big charge they will take for the anticipated restructuring (layoff). Thus, the 4th quarter will most likely post a loss (-5 cents?). During the conference call I heard mostly negatives and the long term sounded quite bleak indeed. Applied will head south tomorrow and probably continue to decline until the anticipated layoffs are announced. It may see some support there. Good time to short. Applied Materials definitely leads the industry and will outperform the other equipment makers and improve their market share when the equipment market recovers. This industry is not going to go away. New technology is always creating benefits that justify expenditures on the equipment needed to produce the next generation of chips (smaller line widths). Applied is the clear leader here. The next couple of months look very bleak for the stock though.