Thomas:
As I recall, there were a few who thought that channel stuffing was raising its ugly head, but most simply wouldn't even consider the possibility. (G) The posted material seems familiar somehow (VBG)
MB and gang.
As previously posted, INTC is and has been number two on my "Hit Parade" for some time. The fall from $100. plus to below $70. provided a nice reward to those who shared our view. What should be noted is that we consider this to be round one only, and that there is more downside to follow. The stock has experienced an expected technical bounce, which is being enhanced by two rumours: that INTC will shortly "go on allocation" (i.e. there is a shortage) on low end chips, and on the hype surrounding the June 29 shipment date for INTC's enhanced P2, the Zeon chip.
I suspect that this misinformation is about to be terminated in no uncertain terms. Allocation of low end micros is utter nonsense as the supply is massive. Pricing is also weak and the Celeron continues to be a joke in the field. With respect to the "big Z", it won't ship on time. Bugs and "errata" (plural) have been found that will probably delay its release for many weeks.
Now let's see,.....several quarters of declining revenues and profits, falling margins, nasty new competition that has usurped both the monopoly status as well as a big chunk of INTC's market share, Merced is delayed, the Celeron is a disaster, the P2 piles up in inventory, price cuts are bi weekly affairs, insider selling is massive, and now the Zeon will also be delayed. Thank goodness for that torrent of naive Asian money. (g)
Best, Earlie |
