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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Saturn V who wrote (87722)	1/17/2000 7:36:00 PM
From: Gary Ng	Respond to of 1572678

Paul, Re: Petz, a one time capital gain could be a separate line item. Such as AMD's gain in selling its headquarter :-) I remembered someone on this thread told me how smart AMD was as they were not just CPU makers but also in the realty business and was so excited about it :-) Gary

To: Saturn V who wrote (87722)	1/17/2000 8:33:00 PM
From: Cirruslvr	Respond to of 1572678

Saturn - RE: "So eventually the $5 billion will add to Intel's income over the next few years, and will be a part of the regular income." Now that it is know Intel will make most of their investments, I don't think they should miss earnings expectations ever again, or at least as long they have enough shares invested. Maybe the market should will expect Intel to have blow out earnings from now on.

To: Saturn V who wrote (87722)	1/17/2000 11:28:00 PM
From: Petz	Read Replies (3) \| Respond to of 1572678

Sat V, re:<Petz, a one time capital gain could be a separate line item.However Intel is sitting on $5billion of capital appreciation, and apparently it intends to liquidate that on a regular basis. So the capital gain is going to be a regular item contributing to income, so it will get lumped with the regular items on the income statement> I would get much more excited about an investment by Intel to increase CPU demand (eventually), than I would about a liquidation of such an investment, whether it is profitiable or not. The sum market value of all Intel's investments is $2 a share. If it is to be liquidated, it is worth 1 x $2.00, not 30 x $2.00. This is why I want to see capital gains clearly Intel also spent big bucks on investments that did NOT pay off. How much did they sell their Chips & Technologies shares for? Zippo. What about the graphics chip company (can't remember name) or the company that made graphics boards bought from Lockheed Martin. This was money thrown in the toilet. Thats why accountants demand that acquisition costs must be at least written off over a long period of time. (Immediately writing off in-process R&D is something else again which may not be necessary.) But the writing off of acquistion costs should be easy to see on the income statement. What Intel did with their 0.69 earnings is ignore all bad investments by not showing a writeoff for one cent (except in footnotes) but showing liquidation of investments as income, indistinguishable from operating profit. and since investments sometimes result in 100% loss, claiming the good results as INCOME but ignoring the bad results. And Intel is way out in left field with respect to standard accounting practice. When the 10Q SEC-sanctioned report comes out, it will assuredly NOT show 0.69 earnings. I still haven't found an earnings report that has significant capital gains and doesn't disclose it in the first or second paragraph and in the financial statements as a separate line item. Petz