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Technology Stocks : INTEL TRADER

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To: Gersh Avery who wrote (8790)12/19/2000 10:31:14 PM
From: Berney  Read Replies (1) of 11051
 
Gersh, In the FWIW category.

I really don't believe the earnings will be affected by investment issues. Now, I'm only an accountant, but it is my understanding that investments are carried at the lower of cost or market. As long as the price does not fall below what they paid, there should be no affect on the balance sheet or P&L until the investments are sold.

There will be material situations, such as IBM's substantial investment in ITWO. They could have a good hit as the market value is below their cost. INTC's effort's to the contrary, this activity should not ever be reflected as operating earnings. Now, will the Market care that there is no effect on earnings?

BWDIK

TB
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