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

To: nihil who wrote (90248)	10/13/1999 11:37:00 PM
From: Dan3	Read Replies (3) \| Respond to of 186894

Re: Intel has rarely missed its number... Intel made 42 cents a share last quarter. But more to the point, look at how fast "goodwill" is accumulating on the balance sheet. Goodwill is an accounting term for "I spent X dollars more on something than it was worth". That money is permanently gone - it's a additional loss - but you amortize the loss over 5 years instead of reporting it all in one quarter. Due to these deferred losses, for the next 5 years an extra 100 million per quarter will be charged against earnings. The investment gains have flowed down into current earnings. Most of the investment losses have been deferred and are being amortized over 5 years. Intel missed it's numbers. Dan