Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 48.95

+0.3%

2:46 PM EST

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To: Barry Grossman who wrote (22884)	5/26/1997 9:52:00 PM
From: mauser96	of 186894

Barry, I stand corrected on the relationship between earnings and investments. However, I do think it's significant that the amount of capital needed for building fabs is usually considered to be a reason for a lower P/E on INTC, but they actually had enough spare cash to spend $2.3 billion more on investments than they did on capital expenditures.According to the chart in the report, Intel considers most of these investments to be "short term". Even after all of this they still had $4.2 billion in cash. I think we can assume in most cases that Intel has better information than we do, and should be able to get a high rate of return on their investments. In previous reports from the company I believe they said the main motive was to nuture and help direct smaller companies in the right direction with the ultimate end of expanding the PC market.Of course , its always nice to make a profit too (Rambus etc). Since Intel is secretive about their investments, there is no way to know about the composition of their holdings. Some of it may be in non technology stocks just as a pure investment.

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