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Technology Stocks : Intel Corporation (INTC)
INTC 48.90+0.6%2:28 PM EST

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To: Mary Cluney who wrote (134522)5/9/2001 6:24:16 PM
From: Road Walker  Read Replies (2) of 186894
 
Mary,

re: "I beleive that Craig Barrett is a very hard working and ethical person, looking out for shareholder interests"

Not if the current stock price is any measure.

As an interesting exercise, try to figure Intel EPS if they didn't have over $1B losses on $1.5B sales in the "other business" category last quarter, and multiply by 4 quarters. Then add the return on the $10B in cash Intel has spent on communications companies in the last two years, and add the return on the over $2B in cash that "other businesses" lost in the last 12 months.

Mr. Barrett may be trying to build his Intel legacy, by making Intel a communications company as well as a microprocessor company. Or maybe that effort is sincerely aimed at increasing shareholder value. But as of this point in time, it's a gamble that isn't paying off, big time. And I have my doubts that it will ever be successful.

Look at the numbers and figure the valuation, with and without "other". Think about buying stock in a company that losses $1B on $1.5B in business.

John
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