Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Katherine Derbyshire who wrote (23336)	8/26/1998 9:49:00 AM
From: nnillionaire	Respond to of 70976

From today's WSJ (with link-need subscription): Applied Materials to Eliminate 15% Of Work Force, Cut Executive Pay By DAVID BANK Staff Reporter of THE WALL STREET JOURNAL Excerpts: SANTA CLARA, Calif. -- Applied Materials Inc. said it will eliminate 2,000 more jobs, or 15% of its work force, and cut executive salaries as much as 10% to cope with a chip-industry slump that is deeper and longer-lasting than was expected even weeks ago.... Applied's latest cuts, though smaller than some industry observers expected, is likely to fuel additional worries about the longevity of the industry downturn. Sales of equipment will drop 28.3% this year, the biggest percentage drop since 1975, predicts VLSI Research Inc., a San Jose, Calif., market-research firm... interactive.wsj.com There is certainly 'blood in the streets'. Good Investing

To: Katherine Derbyshire who wrote (23336)	8/26/1998 10:14:00 AM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 70976

Katherine: Re: "In other words, as several people have pointed out, the market fundamentals are much worse than in 1996, and AMAT's stock price is relatively much higher." But as other people have pointed this is not the 1996 stock market and if you compare the relationship of the S & P 500 P/S and P/B to that of AMAT today, they are trading roughly in the same relationship as they did at the cyclical bottom in the summer of 1996. The institutions will control this stock and their perception of a turnaround is all that counts. Right now they are discounting a mid-1999 recovery IMO. If they see a prolonged down-cycle, the price of this stock will react accordingly at some point.