re:<< Didn't you "imagine" some problems with Intel's sales last quarter ...Care to remind us about that clairvoyant observation? >>>
Let's go through this.
Let's say for instance that INTC has a problem because of increased supply of AMD chips, This is basically what we are talking about.
AMD is basically sold out so we know that CPQ and IBM are building and selling these boxes with these chips.
The AMD boxes are in demand, Why?
They are a great color.
They are cheaper than INTC alternative.
They are Faster than INTC's boxes at the same price.
There is no compatibility issue.
CPQ and IBM the source have pretty good service records.
I believe I thought that INTC would not put up Great numbers.
Did INTC put up Great numbers? NO
DID INTC beat EPS ##, on an operating basis, NO
Did Revenue come in above expectations, NO?
Is INTC next quarter expected to be a down quarter, YES?
Are Revenues expected to return to Historic 20%+ growth rate, NO
Will this be the second quarter in a row of negative growth, YES?
Are INTC's margins going down, YES?
Did INTC's inventory of finished goods increase in the quarter, YES.
And now for the good news in the 1st quarter, AMD, their only real thorn, is going to be able to produce more chips.
What did the stock do ???
It rallies from 70 to 90. Why? Because in 2H 98, all of this will fade away.
What should the stock have done, in your professional opinion ?
Let me guess, Go up because that is what stocks do.
Jim |
