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

To: Amy J who wrote (104801)	6/23/2000 6:58:00 PM
From: Eric K.	Read Replies (1) \| Respond to of 186894

Amy-- The book value of Intel Capital is already adjusted for all the factors you have mentioned. I believe the book value (from the perspective of Intel Capital) is based on the market value of the underlying securities in its portfolio, not the sum of the book values of the companies in its portfolio. In other words, the book value of the 8.4M shares of Micron Intel sold this quarter is $8.68 * 8.4M = ~$72M. The book value from the perspective of Intel Capital, however, is the market value of its position in Micron, so ~$80 * 8.4M = $672M. The employee skill, barriers to entry, etc. are already factored in to the book value of the asset reported for Intel Capital. I assume I am correct in asserting that this is the way the book value of Intel's portfolio is determined? The multiple GVTTucker says should be attached to the portfolio is to adjust for the market values of the companies being too low because of not being public companies or other factors related to Intel's ability to pick up companies or add to their market value in other ways, not a way of adjusting for employee skill, barriers to entry, etc. -Eric