Thursday, March 6, 2008

Applied Materials in $1.9bn solar coup (AMAT)

Sometimes you just have to smile*. Here are our AMAT posts so far this year:
(in order)

Interesting Solar Stock Table

Applied Materials sees solar mkt growing 30 pct/yr (AMAT)

Thin Film Si Solar Cells to Be Produced in India (First 'external' AMAT "SunFab")
Earnings: Applied Materials, First Solar (AMAT; FSLR)
UPDATE 1-Applied Materials profit tops estimates, shares rise (AMAT)
Solar Shines for Applied Materials AND Cocoa at 23 Year High (AMAT; BRK.A)

From the Financial Times:
Applied Materials’ gamble on becoming a major supplier to the solar panel industry appeared to have paid off on Tuesday when it won a $1.9bn order, the biggest ever for its production equipment.
Analysts said the deal for the world’s largest supplier of equipment for the semiconductor industry was about five times bigger than any order it had ever received in its core business....MORE
From the Wall Street Journal:

Applied Materials Moves Into New Sector
In $1.9 Billion Deal on Solar-Panel Plants

Applied Materials Inc. announced the largest order in its history, a $1.9 billion agreement with an unidentified buyer to help outfit factories that will produce solar panels.

The deal is the latest sign that the company's move to diversify beyond supplying equipment for chip-manufacturing plants is paying off. Applied, of Santa Clara, Calif., disclosed the agreement in a filing with the Securities and Exchange Commission....MORE

*Between January 16, the date of the first post and today's close, AMAT is up 15.5%.
During the same period, the Nasdaq Composite is down 7.27%.

I think of AMAT the same way I think of Schlumberger. They are the class of their respective fields. Class wins horse races. And if you're going to be long in scary markets, class is comforting.

Sleep well.