This is probably why INTC was so strong yesterday. What a buffoon. He figures the second derivative of price cuts is improving, so it must be a good buy.
11/26 16:03
Intel to Cut Prices in January, Salomon's Joseph Says (Update4)
By Cesca Antonelli
quote.bloomberg.com.
Santa Clara, California, Nov. 26 (Bloomberg) -- Intel Corp. will trim processor prices in January by an average of 14 percent, a smaller margin than the biggest computer-chip maker's cuts this year, Salomon Smith Barney analyst Jonathan Joseph said.
The price changes will come Jan. 27, Joseph wrote in a note to clients, citing a report Intel gave its customers. They will follow average cuts of 40 percent in August and 23 percent in October and come three months after the last reductions, compared with the two-month period between previous ones, he said.
Intel has slashed the price of its Pentium 4 by as much as 84 percent since the chip came out in November, trying to shore up demand and bolster sales of the personal computers that use it. Now, supply of the processor is tighter, so the company can be less aggressive with price cuts to fuel demand and stave off competition from Advanced Micro Devices Inc., Joseph said.
``The news is good for investors in Intel's stock,'' Joseph wrote. ``Do not look for accelerated price cuts in 2002.''
Tom Beermann, a spokesman for Santa Clara, California-based Intel, declined to comment on the report. The company's shares rose 81 cents to $31.87 today. They've added 6 percent this year. |
