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Politics : Formerly About Advanced Micro Devices

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To: Paul Engel who wrote (118886)7/3/2000 12:43:33 PM
From: TimF   of 1577147
 
Selling a corporations's headquarters - with a lease-back - is acceptable, however ?

Selling off divisions of a company is acceptable, however, such as the PLD division?


Such decisions (and Intels selling shares) are acceptable if they are good moves for the company. When AMD was losing money it was better to put the money from the headquarters in to areas that support the strategic vision of the company such as building Dresden and R&D. They could have made a profit if they didn't do as much R&D and fab building and they would not have had to sell the HQ but long term they needed the technology and capacity. These moves where quite acceptable, even a good idea, however the money made from selling HQs and divisions should not be considered equal to cash from operations.

Intel's sale of shares for a profit brings money in to the company, but if they sell shares they can no longer realize further gains for these shares. The sale is quite "acceptable". It might be a good idea (depending on what Intel does with the money), however the money made from the sale should not be considered as important as income from operations. If Intel sold all the shares they hold in other corperations next quarter there "earnings" would be great, but that doesn't mean people should all of the sudden be willing to pay twice as much for shares of INTC.

Tim
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