Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 36.38

-1.3%

Dec 22 3:59 PM EST

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To: Raymond Thomas who started this subject	7/17/2001 10:58:30 AM
From: COMMON_SENSE	Read Replies (2) of 186894

Try this math... Take 11% of $6.5 billion sales for Q2 (and I think it will be a bit lower than this) and you get a bottom net of $715 million for Q2. Times this figure by 4 (4 quarters) and it would represent a profit of just under $3 billion. Now if a firm earned 715 million on $6.5 billion sales, that would be a bottom line of 11% and that is extremely respectful in any industry. I would like to bottom line 11% and AMD certainly can't show any real profit for the rest of this year, much less 11%. Intel used to coin about 27% and the price wars and reduced volume has made it closer to the 11%. If Intel drops pricing overall another 11% (and they just announced 37% selective cuts) and nothing were to change in their cost of operating, Intel would be making zero dollars profit and AMD would match their pricing and lose another 11% which would drop them to a loss of over $150 million or more a quarter. How long could AMD stand toe to toe with Intel on this playing field. Intel, with $13 billion in the bank, could play this game infinitely. AMD would be backed against the wall. That is closer to the picture I see out there.... Where would any wise man want to invest?

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