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Politics : Formerly About Advanced Micro Devices

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To: Road Walker who wrote (126261)10/17/2000 12:39:34 PM
From: Daniel Schuh  Read Replies (1) of 1580336
 
John, it's not a question of coming up short by reporting a capital loss. By normal wall street rules, if you want to treat the Micron sale as regular income, if Intel doesn't continue to come up with $2gig a quarter in cap gains, then they're going to show a drop in income. Why they want to put themselves in a position like that, beats me. I assume that there'll be some fancy footwork done, saying that, retrospectively, that $2gig should be treated as special.

If you want to treat Intel like a mutual fund, maybe you should think of valuing it like a mutual fund. Which is, conventionally, at something like book value for the capital holdings. Expecting a 50x earnings multiple for cap gains is a head scratcher.
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