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Technology Stocks : Intel Corporation (INTC)
INTC 35.75+3.6%3:59 PM EST

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To: Barry Grossman who wrote (45413)1/14/1998 8:56:00 AM
From: exhon2004  Read Replies (1) of 186894
 
Barry:

In response to my question of what they do with all that cash you wrote:

"Aside from funding capital expenditures without debt, spending over $ 2 billion on R&D, and buying back a whole lot of shares, they still managed to earn a couple of hundred million or so on the interest on the remaining balance."

I'm not looking at the roughly $10B they have in the bank but the $1.7B or so they add to it every three months. Capital expenditures is good point but the R&D is already out of the net.

Actually my question was rhetorical but I didn't want to miss the opportunity to make the point that even if Intel's strategy is flawed, which it does not appear to be, here's a company that can afford to buy it's way out of a situation.

ie More cash in the bank than AMD will invoice to their customers in three years time.

Best Regards

Greg Gimelli
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