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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: ild who wrote (71807)5/27/2002 3:25:48 PM
From: Zeev Hed  Read Replies (2) of 99280
 
Only a very small portion of it, Capex is not expensed, it is capitalized and charged to operation over the life of the facilities, thus this years earnings will actually have a greater charge for depreciation than last year, since last year, INTC spent $7.5 B, and the year before a little less, thus, if everything else was equal, this years earnings would be lower. I think you are mixing "cash flow" and "earnings". Yes, their cash flow would be higher than expected if they were running at a higher rate of capex expenditure.

Zeev
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