I think I killed the thread. OK, I take it back, talk about Jack the Ripper or Cuban cigar abuse if you want. Actually, maybe there are a few more worthwhile things to do today? (I'm watching the sauce).
Check this out. This guy (Kurlak impostor) actually had a few people faked out on the Intel Yahoo thread!
messages.yahoo.com@m2.yahoo.com
(43/M/New York,
New York)
Sep 13 1998
4:21AM EDT
[I am posting this message because I am not oblivious
to the criticism I have received on this board. I would
like to address this criticism however, and make the
following points to any current or prospective
investors that may be prepared to consider my views:]
1) The Technology:
I believe Intel have pursued various sales and
marketing schemes for profit-only motives at the
expense of the technology. While this sales and
marketing activity has resulted in large near-term
gains, future technology considerations were ignored,
especially in the high-end server market. An example
would be Intel's failure to provide a truly scalable
solution in the form of the Pentium II. Another example
would be the Celeron Processor which blatantly takes
aim at the low-end clone chip market, a sector that
Intel must scrupulously strive to avoid. It is true that
Intel have made strides with the scalable 400Mhz
processor family. Meanwhile RISC, SPARC and
ultra-high speed chips soon to be inroduced by
National Semiconductor may render Intel's 400 Mhz
technology ineffective. Certainly SUNW and HP have
made tremendous strides with high-end servers that
make Sun and HP very attractive for large database
applications, fast becoming a significant sector of the
market. When was the last time you heard of x86
technology running a clustered solution for an Oracle
database run in parallel with shared DASD? Which
leads me to my next subject:
2) Acquisitions
Intel have purchased a large number of small
networking companies, as well as funding poorly
conceived initiatives like Pandesic with SAP. Intel's
foray into contracting motherboard production (based
on Intel chipsets) has been somewhat successful, but
analysts consider this to be a break-even effort at best,
and successful only as a means of effectively
marketing Intel processors. Meanwhile, Intel's real
manufacturing capability has been over-expanded with
some wafer fabs on half-time or effectively in
operational shutdown, to allow high inventories to
subside. As the world's largest chipmaker Intel have
allowed themselves to become vulnerable to a
massive short-term drain on resources due to
over-expansion in the wafer-fab area. Even the i960
has been affected, which has been Intel's primary
bread and butter for years. Which leads me to my next
subject:
3) Company Fundamentals
Intel have undergone massive expansion that is
becoming difficult to maintain. An example would be
the new Folsom facility which is proving to be less
than effective as an R&D think tank, and is primarily
seen by analysts as a further drain on resources. The
reason is that analysts are unable to determine which
products are developed at this facility, and for those
that are developed here, it has been difficult to gauge
the positive earnings potential or performance thereof.
I would like to further entertain a detailed description
of production issues associated with Intel's worldwide
wafer fabs, especially in the UK and Ireland, but such
a discussion is beyond the scope of this article.
4) In Closing
Severe pressures are occurring within these markets,
especially in Asia, China and South America that are
not immediately visible to US investors, however
these pressures may be seen to affect at least thirty
percent of Intel's current and future markets. At $85
Intel sells for a premium approx ten percent above
other chipmakers which is unjustified on these
fundamentals. Thank you for your time and attention if
you have read this far, and please be aware that when
I cover Intel as a strong sell this decision is not based
on personal bias of any kind, but pure analysis of
market fundamentals for this stock,
thanks,
-TK
View Replies to this Message
INTC: Quote | Profile | Research | Insider
This Is a Reply to: Msg 1 by YahooFinance |
