Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John Hull who wrote (102190)	4/11/2000 1:33:00 PM
From: GVTucker	Respond to of 186894

John, RE: the 17½ gain A couple of thoughts along those lines: First, this reversal does not affect cash flow at all. Thus, for the primary thing that I look at, there is no effect at all. Second, although I agree with you that $600mm is not trivial, that amount reverses accruals that occurred over 2 years, so you're really talking about an impact of a little more than 2½/quarter. Most important to me, third, you again correctly state that the market looks forward. And one thing that I found interesting is that guidance for the tax rate going forward was unchanged. Thus, whatever happened in '97 and '98 and was subsequently unwound is not affecting current margins. In the end, I think the most logical conclusion is that Intel's market cap should now be 17½ more than we used to think, pretty close to irrelevant.