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Technology Stocks : Intel Corporation (INTC)
INTC 40.31-0.1%12:57 PM EST

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To: Road Walker who wrote (104791)6/23/2000 5:56:00 PM
From: Tom Chwojko-Frank   of 186894
 
Second, assuming $2.3 Billion in Micron stock was sold, and that amount was commingled with other Intel funds, you have to penalize the book value of Intel Capitol by that amount. Even though the gross profit margin was 80% +/-, ROI 400% +/-. Is that a fair to lower the valuation of the Intel Capitol division?

In my opinion, yes, if capital is removed from the Intel Capitol(sp?) then, I would lower its valuation. Then when other divisions of Intel get that cash, I can be reevaluate them based on that flow of money and how it's used.

Now my question is: how are investors valuing the parts? The book value for Intel Capital and earnings based value for the rest of Intel happens to make sense to me.

Tom
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