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Technology Stocks : Intel Corporation (INTC)
INTC 34.50+2.6%Nov 21 9:30 AM EST

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To: Paul Engel who wrote (45798)1/16/1998 2:05:00 PM
From: Brian Malloy  Read Replies (1) of 186894
 
Death to AMD <ggg>
Should you kick a chipmaker when its down? You bet.

Backing the Bullies Earnings? Price? Fugget aboutit. Buy those ruthless companies who gladly kick their rivals when they're down.

By Jim Jubak

It's not crazy. Just downright mean.


Intel (INTC), for example, knows by now how to play this game in its sleep. Look at the details in the company's latest financial report, released last Tuesday. With revenue basically flat for the fourth quarter compared with the year-earlier period, income actually lower ($1.7 billion versus $1.9 billion), and margins projected to shrink to 55% from 59%, the company announced an increase in capital spending to $5.3 billion for 1998 from 1997's $4.5 billion. R&D will rise to $2.8 billion in 1998 from $2.3 billion.

All this while the company is cutting prices to keep competitors from gaining market share. Don't you think the execs at AMD sweat knowing that they have to execute perfectly in order to pick up ground?

investor.msn.com
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