Applied Materials No-Politics Thread (AMAT) Message Board

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To: Proud_Infidel who wrote (24410)	8/3/2010 8:29:11 PM
From: Cary Salsberg	1 Recommendation Read Replies (1) of 25273

RE: "Can anyone explain to me why Splinter is still at the helm?" Splinter is running a business. He is measured against business goals, not the stock price. He is actually running 4 businesses, semiconductors, solar, flat panel, and service. No other executive in the semi equip industry comes close to that. Each business, except solar, has reported improving and excellent metrics. Strong action has been taken to fix solar. The AMAT stock price has been hurt by the company's diversification. Traditionally, "conglomerates" are given lower valuations than "pure plays." This general rule has been exacerbated by the failure of thin film solar and by the market's strong perception that diversification mutes the cyclical peaks while making insignificant contributions to the cyclical troughs. AMAT management has a longer term view than the market. Splinter is employed by them. Investors have a choice. Side with the market or with management. The market is winning, now.