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: Amy J who wrote (104932)	6/27/2000 7:18:00 AM
From: GVTucker	Read Replies (2) \| Respond to of 186894

Amy, RE: If they give guidance on their earnings, why not use it? Because the money was not earned in that period. Let's say Paul Engel owns 100,000 shares of Intel with a cost basis of $0.01, costing a total of $1,000. Today, those shares are worth $13,400,000. Has Paul made $0 over the past thirty years or has he made $13,399,000? If he sold all of these shares tomorrow, had he earned that income over the past thirty years or did he earn that income only in the 2Q 2000? GAAP is a set of rules that public companies must follow. That doesn't mean that we have to follow those rules in interpreting financial statements.

To: Amy J who wrote (104932)	6/27/2000 9:05:00 AM
From: Dan3	Respond to of 186894

Re: based on the market value of the underlying securities in its portfolio, not the sum of the book values .... Intel reports on investment value and unrealized gains as different entries. I don't blame them for avoiding a situation where a market downturn would inevitably depress reported quarterly earnings. As it stands, Intel adjusts reported quarterly earnings by increasing the value of the investment portfolio when shares are sold and gains move from the footnoted unrealized gains to the investment assets on the income statement. I posted several times about this tactic last August - I don't have any links handy right now, but it's pretty obvious if you look at the quarterly statements. Regards, Dan