Daniel,
re: "John, in case you didn't notice, AMD didn't browbeat the analysts into counting the comm division sale as normal income. Somewhat in contrast to Intel's Micron sale..."
Yes, I noticed. Maybe I can explain. Intel intends it's Intel Capital group to be an ongoing business. As with any of their business segments the performance, profit or loss, should be included in their business results. Does it make any sense not to include a segment of their business?
AMD's sale of their comm division was a one time event, non-recurring. Would it make sense to include those numbers in AMD's future valuation, and expectation?
Intel Capital is a two edged sword, at some point in time they will have to pay the price for the losers in their portfolio, if they sell or if the company, that they own stock in, goes out of business.
So if you are thinking really short term, you can claim that Intel is cheating on earnings. Or you can wait until they have to take a capital loss against their operating earnings (that will happen sooner or later), and then you can gloat. But you can't have it both ways.
John |
