Burt, Larry and All,
This morning, when I turned on CNBC and heard that Kurlak had bad mouthed Intel again, I realized that we must be close to an options expiration day. Sure enough, it is the third Friday of the month today and options will expire. Right on schedule, Kurlak has come out with his negative comments. Nothing new, except that he reported the delay of Intel's Texas FAB, announced almost a year ago, as if the decision was made just recently. As if, the decision was made right after Intel read Kurlak's last few reports.
After I had a chance to read Kurlak's comments this morning, I confirmed that he continues to issue negative statements unsupported by fact, and intentionally ignoring Intel's forward looking guidance statements. To imply, as Kurlak does, that Intel woke up yesterday to the fact that the shift to the .25 micron process would have a 50 % increase in supply capacity, without an accompanying increase in demand, is ludicrous. I have seen no statements that PC demand has decreased beyond that which has all ready been known, or anywhere near the extent that Kurlak would have us believe. I am still expecting Intel's second half 98 to improve and that PC demand remains in tact at 15-18 % annual growth.
What is most surprising to me though is how investors have allowed Kurlak's comments to have such great impact on the short term price, month after month. In addition, I also find fault with Intel, for allowing this monthly manipulation of their stock price by Merrill Lynch and Tom Kurlak, to continue. Intel's management must find a solution to this problem. Intel has to realize that the increased volatility in their stock price, caused by this analyst's comments, is not serving their investors, or themselves, well.
Regards,
Jules |
