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Technology Stocks : Intel Corporation (INTC)
INTC 40.56+10.2%Nov 28 12:59 PM EST

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To: Joe NYC who wrote (127967)2/21/2001 7:05:18 AM
From: Road Walker   of 186894
 
Joe,

re: "With huge cash reserves, why not do the hiring and buying during the slump, and slow down hiring when it takes a bidding war to gain an employee?"

Productivity is still one of the best (though out of favor) ways to measure the health and performance of a company, sales and profits per employee. It shows a company has the flexibility to handle good and bad times, and thus they are more likely to be a long time survivor.

As sales and profits erode this year, Intel needs to reduce headcount, unfortunate but true. If you want to find a good stock to short, look for a company with declining earnings and increasing headcount. They are on a slippery slope and don't have the discipline to adjust to the marketplace.

John
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