GV, thanks for the analysts' updates on Intel, capex related and other. Nevertheless, I believe there is still an overhang of negativity about Intel whenever their lowered capex comes out. Call it guilt by association if you want, but whenever they start talking about the equips and capex spending, Intel, or INTC, gets nailed right along with them. I'm not saying Intel is "without sin", far from it, it's just, what is it called, the inefficiency of the market or something like that? Go negative on a stock, like happened with Microsoft and Intel on uncertain or lowered guidance, or because of lower earnings or revs than expected, like IBM with revs, but the capex story is a good one for Intel now. And, seems to me they did exceed consensus revs and earnings on operations last quarter.
Regarding capex, Edelstons says, "Finally, Intel's capital spending budget of $5.5 billion is expected to decline 25% in 2002 (versus our estimate for a 20% decline), and this sharp decline suggests that Intel's depreciation expense (30% of COGS) will begin to decline as a percentage of sales during the next couple of years." This is noted in the positives.
Good for Edelstone, but he's obviously pretty much a lone wolf on that take.
Bottom line is that the lower capex story has impacted Intel stock as much as the equips themselves, right from the night of earnings release, but it should be looked at as a positive, as Edelstone said.
Tony |
