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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: kapkan4u who wrote (86436)	7/31/1999 7:36:00 AM
From: Fred Fahmy	Respond to of 186894

Actually AMD's guidance for the last several years has been "devoid of any substance". By continuing to fall short on their promises, they have repeatedly embarrassed many of the analysts who have supported the company and hyped the stock during that time. Kumar's comments reflect that frustration. Oh well, you would have thought that by now they would have learned......can't really blame Jerry....that would be like blaming a used car salesman for selling....well....used cars. Kumar says "They consistently set high expectations and never, ever, execute it to plan." The "expectation" in 96 was that the company would be profitable staring in 97. The expectation in 97 was that the company would be profitable starting in 98. The expectation in 98 was that the company would be profitable starting in 99. The current expectation is that the company will be profitable starting next year. There is a lot of history to back up Kumar's comment....and of course the stock price has accurately reflected both his comment and the associated history. Re: market share Of course, "30% market share" is a vague statement. What segment? What channel and/or geography (i.e. U.S. retail)? Here are some statements from AMD's January 13, earnings release. "At 38 percent share of market, AMD-K6 family processors were number one in the burgeoning segment for sub-$1,000 desktop PC systems in the bellwether North American retail channel" The market share above at that time seems credible. However, referring to the North American retail channel as "bellwether" is utter nonsense. The last estimate I saw (a year ago) was that the U.S. retail channel represented approximately 10% of the worldwide PC opportunity. The bellwether channel is clearly the direct channel (i.e. Dell and Gateway). "Our market share in the $1,000-to-$1,500 desktop segment was 37 percent." Perhaps this is what Kumar was referring to. In the absence of any qualifiers (such as channel or geography), I find the statement above to be highly unlikely. FF