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Technology Stocks : Intel Corporation (INTC)
INTC 35.10+2.3%Nov 19 3:59 PM EST

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To: Khris Vogel who wrote (51232)3/25/1998 2:15:00 PM
From: TTOSBT  Read Replies (2) of 186894
 
Khris, Re: ""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."

Well then, mgmt believes they can get more for their money someplace other than in it's own stock going forward. And in a low interest rate environment that is really saying something about their confidence in their own future.

Re: "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?"

They don't necessarily have to have debt. I was merely saying if they seem to think they need to have cash in excess of $10bill in a low interest rate environment (long bond that's LONG BOND) below 6%, then they can borrow cheaply going forward stead of saving share holders money for rainy day.

Re: " Grove's PARANOIA has proved itself to be a good trait, and I don't think he should change now."

I was assuming Grove's paranoia was a business posture not a trait. If it's a trait of his then it will never go away and he has to deal with it. But if I correct in assuming it's a business posture then he should realize it's not the time to be paranoid. He did a good job of making AMD paranoid. Now he should realize -and maybe he does- he has all his ducks lined up.

If it is true that Intel is the best possible opportunity going forward. Mr Grove should give us an indication he sees it that way too. And I contend a buy back would show he has more confidence in Intel's future.

He doesn't hesitate to announce earnings warnings. I just find that rather cheap when you have in excess of $10bill seemingly just for a rainy day. Let the share holders pay for earning slow downs we'll decide where to spend their money.

Smacks of greed to me?

TTOSBT
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