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Technology Stocks : Intel Corporation (INTC)
INTC 42.61+6.5%3:59 PM EST

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To: Dan3 who wrote (138747)7/8/2001 7:39:21 AM
From: Dave  Read Replies (1) of 186894
 
Dan,

Your arguments of depreciation are noted, however....

When AMD builds a $5B fab, they must come up with the $5B. Of course, if the fab could be built in a day, they could expense the entire $5B that Q, but why do that? The purpose of depreciation is to expense the cost of the useful life of the PP&E....

If I was an AMD investor, I would be worried about the Interest Expense AMD has. That is a 20M cash outflow ever quarter and if you look at AMD's Quarterlies, their interest expense has been growing each Q. Remember that their LT Debt will also come due. As an AMD investor, I would worry if AMD will be able to re-float their debt...
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