Hi John, RE: "These are real operating divisions that Intel bought with shareholder money. They are now losing over a dollar for every dollar of revenue."
Some were making very good profit before they were acquired, and from the outside looking in, it appears like Intel opted to acquire technology and not worry about the short-term revenue - which is absolutely fine as long as this is a conscious decision, not an accidental occurrence due to a confused sales channel.
RE: "Barrett's new business adventures are eating away virtually every profit dollar."
I don't think you would want to advocate what management at General Motors or Chrysler did back in the early '80's. The auto industry didn't get what Barrett gets. The riskiest thing a company like Intel could do is to hide in its existing businesses and not venture into something new. It's got to take the risk to find new opportunities for the future. Avoiding risk is the biggest risk to any large company. Stagnation kills. While conscious risk can be scary, it is certainly the better option.
The issue (for me) isn't how they entered into new businesses or capex, but rather the lack of disclosure around these. I think they have about 6 months to report on "Other", before my patience on the lack of disclosure gets thin, certainly no more than 9 months.
RE: "very, very unlikely long term. I'll post more after I get a chance to look at the numbers."
How so? I completely agree with Duke's comments about the large market opportunity here. The only thing I have issue with is the lack of disclosure around "Other."
RE: "Thanks for the good news. "
It's rumor, not news.
It may be good, or it may be bad for Intel. It's bad if they decide to keep the division, if good talent leaves due to headquarter management not clearing up the rumor. If they decide to get rid of the division, a rumor like this means there could be less packages to give to employees, which is good for shareholders.
Regards,
Amy J |
