Re: "I strongly disagree with your contention that INTC should leverage itself up, a la IBM. INTC's strong balance sheet is a powerful tool for future growth (and survival if tech goes into a big recession)."
Well then, I would have to agree with you if Intel is preparing for SURVIVAL! I would have to say either they are in big trouble going forward or they are PARANOID! going forward. Either way investors don't want to participate. Which leaves the rest of us HOLDING and waiting until better days come around or a better investment environment than the current one.
Just exactly what would the point of all this debt? They have a war chest of cash that they have accumulated, w/ these funds earmarked as financing future growth opportunities (internally and externally generated) and potential stock buybacks. While this cash might not be "working," one has to believe that these funds are not totally idle, as mgmt. is investing these funds in the highest yield, quality short-term instruments.
So if they can't spend these funds today in a manner that will result in increased shareholder value (but will tomorrow), what would they do w/ funds from debt?
As far as upping dividend distributions, again one has to be confident that mgmt. will do that when it can not identify any other potential needs for the funds in the future.
Mssrs. Moore, Grove, Barnett, et al, have served shareholder interests extremely well in the past. What evidence do you have they won't in the future? Grove's PARANOIA has proved itself to be a good trait, and I don't think he should change now. |
