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

To: Diamond Jim who wrote (105842)	7/18/2000 5:01:12 PM
From: jackrabbit	Read Replies (3) \| Respond to of 186894

Why doesn't Intel get out of the side businesses?? Operating profit would have been 35% higher -- $3.36 billion vs. $2.4 billion -- without them. They should at least be like GE -- if you're not #1 or #2 within a short period of time, get out of the business. Anyone disagree??

To: Diamond Jim who wrote (105842)	7/18/2000 5:26:29 PM
From: pgerassi	Respond to of 186894

Dear Jim: The $88 million required $1.5 billion increase in revenue or a incremental profit margin of 5.8%. This is not good and is lousy compared to IABG's supposed 60% margin. This comes from all those acquisitions that Intel makes, where it wants to include the revenue but not the expenses. I think the other telling figures is that the Capital group is now worth $7.5 billion with $4.6 billion in unrealized capital gains. This means Intel will not be able to pad results at the current rate for more than two additional quarters given stable market conditions. The whole value of the gains is only worth $0.66 a share before taxes or $0.45 a share after taxes. Since all other groups, including flash, lost $849 million in Q2, Intel's acquisitions appear to be very bad at making money. In 1999, they were at least breaking even. This is worrisome for the future. Pete