Hi Ian,..Re:.It's not all that bad.
Ian, from the following piece in MSNBC, the good news.
Intel profits come in shy of Street forecasts
msnbc.com
“Unit demand appeared to be better than extremely strong,” said Drew Peck, an SG Cowen & Co analyst. “But in the battle between unit demand and lower prices, lower prices won.
Now the bad news. <g>
While revenues were better than analysts expected, gross margins were not. Intel said that its gross profit margins were down to 58.7 percent of revenues, compared with gross margins of 59 percent in the prior second quarter.
“Average selling prices were down from the second quarter and a little lower than we expected,” said Intel chief financial officer Andy Bryant, in an interview. “We did take market share at the low end, which causes ASPs to be lower.”
More good news. Looks like Meyer, one of the more hawkish Feds might be coming around to the view that maybe the valuation model currently used might be dated. <ggg>
Fed's Meyer says stock price gains may be justified
biz.yahoo.com
WASHINGTON, Oct 12 (Reuters) - Federal Reserve Governor Laurence Meyer said on Tuesday the sharp rise in U.S. equity prices over recent years was challenging traditional stock valuations but may at least partly be justified by underlying shifts in the economy's structure.
bog.frb.fed.us
Cheers,
Lee
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