Paul, Re: Kurlak
Thomas Kurlak is an Intel Investor Relation's Nightmare.. >>>FEW PEOPLE can claim to have had as dramatic an influence on the price of Intel's (INTC) shares as Merrill Lynch & Co.'s semiconductor analyst, Thomas Kurlak. .. , givenKurlak's reputation as the last word on Intel stock, .<<<
Can you give me the name of an Analyst that has this kind of influence on the price of GE, Coca Cola, Microsoft, Gillette, Merk, Oracle, or Dell?
Kurlak has taken this opportunity that Intel has given him to manipulate Intel share prices to coincide with his own interests rather than that of Intel shareholders.
Kurlak is not as stupid as most of us on this thread would like to think. He knows the difference between consumer spending and capital spending, and the numbers behind each type of spending, yet, he will obfuscate the difference by saying things like:
>>>.the popularity of the sub-$1,000 computer promises to pressure Intel margins further. For PC makers to make money on cheap computers, the microprocessor -- the most expensive part of the PC -- has to cost around $80, far below the $200 that Intel currently gets on average for its chips.<<<
Kurlak knowingly (to paraphrase Abbey Cohen) uses worthless historic parallel, mistaken theories of causation, and busted rules of thumb>>>to manipulate sentiment against Intel.
>>>He sees many similarities between the current state of the PC business and the VCR market in the 1970s. Prices for both boxes stayed high for a number of years. But after the VCR reached a level of function that consumers were satisfied with, they balked at paying for incremental improvements in performance. "After a while, VCR makers couldn't add bells and whistles that people would pay for, so prices went down," explains Kurlak. In other words, people didn't want more programmability with their VCRs, they just wanted to buy one cheaply.<<<
Kurlak knows quite well the tremendous intangibles that do not show up on Intel's Balance Sheet: Brand name, proprietary technology, and the tremendous investment in human and capital assets. Yet Intel has a PE of less than 24 when compared to:
KO ~ 42
MSFT ~ 53
G ~ 41
GE ~ 32
ORCL ~36
MRK ~ 32
AMD ~ Infinity
SUNW ~ 24
MOT ~ 31
DEC ~ 38
SGI ~ 90
ALTR ~ 24
Kurlak is also a nightmare for long term Intel investors - as a certain amount of his negative spin will inevitably linger to depress share prices for a long time to come.
Mary |
