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

To: Amy J who wrote (104733)	6/22/2000 4:40:00 AM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Amy and Intel Investors - Intel Launches new Web Appliance - and it's Linux-Based - The Intel Dot.Station!!! Intel Corp.on Thursday unveiled its first so-called Web appliance, which gives consumers a built-in phone, Internet access and e-mail, in the company's latest move beyond its core business of microprocessors for personal computers. Paul {==================================} dailynews.yahoo.com Thursday June 22 3:01 AM ET Intel Introduces Web Appliance By Michael Fitzpatrick LOS ANGELES (Reuters) - Intel Corp.(NasdaqNM:INTC - news) on Thursday unveiled its first so-called Web appliance, which gives consumers a built-in phone, Internet access and e-mail, in the company's latest move beyond its core business of microprocessors for personal computers. The No. 1 semiconductor maker said the Intel Dot.Station Web appliance would be offered by Internet service providers, most likely as part of an overall service package similar to those for cable TV set-top boxes or cell phones. Designed by Intel, the device would be built by overseas consumer electronics manufacturers. It will run on the upstart Linux operating system that has emerged as a rival to Microsoft Corp.'s Windows software. ``This is the first in a family of products,'' Greg Welch, director of marketing for Intel's home products group, said in an interview. He said Intel expects to be shipping hundreds of thousands of the devices by year-end. ``It's not unreasonable to guess that this is a billion-dollar business opportunity. The question is will that come in two years, three years, four years,'' Welch said. ''There's no doubt we see strong indications of a robust market.'' Intel does not expect to sell the machines directly to retail, he said. Besides Internet access and e-mail, the Intel Dot.Station would provide features such as a built-in calendar, address books and note-posting capabilities, Intel said. The Dot.Station, which consists of a single free-standing unit with a monitor and a separate keyboard, has a high-resolution screen that can show the full width of a Web page and includes a built-in phone. ``It's fundamentally a family communications product that unites Web-browsing, e-mail, some nice home organizational applications, even an integrated telephone,'' Welch said. ``It's targeted to those households that don't yet have a PC,'' but are nonetheless interested in getting online, he said. ''Installation consists of plugging in the power, plugging in the phone line, plugging in the keyboard and turning it on.'' While the devices are most likely to be provided as part of an overall service package, the cost would be comparable to low-priced PCs in the $500-$700 range, Welch said. ``Our largest customer fully intends to offer the device to their customers at this point for free,'' Welch said. He declined to name the Internet service providers involved in talks with Intel. The appliance comes with software that allows service providers to remotely manage and upgrade the devices. Service providers would be able to customize the content and services of the devices to match their brands, Intel said. The decision to use Linux software to run the Dot.Station came at the request of customers, Welch said. Currently, the PC market is dominated by machines using Intel processors and Microsoft software. Welch said Intel did not expect the new devices to begin whittling away at the overall PC market. ``I don't see it cutting into the PC business,'' he said. ''Quite frankly, it would be my expectation that if consumers use our device, become comfortable with it ... they might find a need for a PC in their lives sooner than they would have if they had never bought the device.''

To: Amy J who wrote (104733)	6/22/2000 8:09:00 AM
From: GVTucker	Respond to of 186894

Amy: I don't think it makes sense to value a business on some multiple which measures how potentially wasteful an entrepreneur might be, which is essentially what book value is. Intel funds a business with an investment. That is the book value. Whether that money is wasted or not does not change that book value, which would contradict that statement. I would depend on the good people at Intel Capital to invest in ideas and people that are not wasteful. Hence the multiple of book value. If Intel showed such poor skills that they invested in people who cared more about wood paneling in an office and driving a Benz instead of building a business, then I would have advocated a discount to book. Look at the public securities in Intel Capital's portfolio. The book value of the MU shares, less the accrued tax liability, is a pretty good indicator of its value to Intel shareholders, at least in my book. Intel sold their MU shares at the market value in the past quarter, which is the indeed the book value of the shares. I'd say that this is a pretty accurate measure. You manage a hedge fund - I suspect earnings are very important to your investors, not only to the IRS. If your earnings were consistent and reliable, why wouldn't that increase the valuation of your company by a factor which is related to the expected annuity of the estimated gains? Realized and unrealized gains are important to my investors. In fact, unrealized gains are even more important to my investors, because the accrued tax liability isn't yet monetized. This whole debate began because some people were wondering why the announced capital gain was not more positively received by the market. My point was that this was not a new gain; it was only a transfer from an unrealized gain to a realized gain. Intel made most of this money last year. The market was correct in not caring. When an investor sells out of my fund (foolish as that investor might be), that investor gets book value. When I was open to investors, an investor buying into my fund would have gotten credited for the contributed book value. My funds are collections of publicly traded securities. They are worth 1x book value.