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

To: MileHigh who wrote (24806)	10/1/1998 9:52:00 PM
From: Joe S Pack	Respond to of 70976

Thread, I think AMAT managed to give a nice spin on their lose. It will be interesting to see the actual numbers on Nov. 17th. Hope we will get a good picture on that day. Or may be their deal is in Yen and hence they are taking advantage of it at this time. I beleive it is the former. Again you never know how their accountants can use their skill. AMAT has $1B back orders which should be very useful to make a smooth the lose transition. I am not sure what are the contractual constraints that will hold that $1B as such (are they mere commitment? irrevocable LCs? or vapour orders). Will there be further restructuring in that department also?. In flow of new orders is an unknown quantity and I don't see any clear picture for a few more quarters. It looks like Japanese are taking AG and Rubin to their task and are trying to recover some of their bad loans through sky high export/import imbalance strategy. All the best. -Karun

To: MileHigh who wrote (24806)	10/1/1998 10:11:00 PM
From: akidron	Respond to of 70976

The joint venture restructuring is new, the projection of a loss in the q is old.... my guess is still that AMAT has about $250 million more to write-off. Also my guess is that much of the back-log will disappear, as the financing just doesn't exist... maybe someone with actual knoledge can shed light on this ---- if I understand it correctly, orders are not fully backed by letters of credit, but secured by non-returnable deposits, and further payments are then made in tranches before delivery, which is why back-logs shrink, because in bad times fabs will just write-off their deposits. I this not hoe it works. FYI.FWIW.ETC. Think IBM is the short of life.

To: MileHigh who wrote (24806)	10/2/1998 5:27:00 AM
From: Duker	Read Replies (1) \| Respond to of 70976

Milehigh, They have been hinting about doing something with the JV. I would guess that they have figured now is as good a time as any. My personal opinion is that Applied Komatsu has always been a bit of a strange beast ... a bizarre equity pick-up line on the income statement ... with little attention ever paid to it by most ... As far as the small loss ... they had announced a small loss after the restructuring for the quarter ... as near as I recall ... I did have a dream last night that AMAT opened at $16 ... that would be a pretty attractive level to add ... I fear that we may not get there, however. At $16, even Akidron would be tempted! --Duker