Mary, Joey, Derek,
I agree with Mary that Intel could do a better job of managing expectations and "selling" the prospects for the company and the industry. I suspect that they fear shareholder lawsuits and overly cautious in their public statements.
Some perspective, Intel is the benchmark for the PC industry, with the largest component cost, most marketable component, the most important R&D and new product performance implications, and the highest profit from each computer sold (?maybe MSFT?). With their marketshare and visability, they influence the entire sector. The perception of their performance influences not only the $Billion plus that changes hands every day in Intel stock, but also 100's of other tech companies stocks.
The really great companies at managing street expectations make things look better when they arn't so good, make them look worse when they are great. They give very clear guidance on earnings well in advance, and revise the information when it changes. The analysts never have to go to more extreem projections because they trust that the company will update them immeadiatly if things change. Stock price becomes less volitile, PE's move up.
The trade off is that Intel's paranoid secretive culture has been very successful, but I think this one department could be more open and optimistic in support of the shareholders.
JMHO,
John
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