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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (17987)	11/6/2000 10:58:09 PM
From: Goutam	Read Replies (2) \| Respond to of 275872

Ted, re: < don't understand why you think the benefits from this division will end soon. I haven't look at it as closely as you have but when I did look, a good portion of the stock they held was thru participation deals with new startups like ANCR. As I understand it, it works much like with employment options....they get the stocks at a low price and then sell the shares fairly high. As long as there are startups, I have got to believe this will be a lucrative business for Intel. > Did you read my original post? Message 14738244 What I stated in my original was that Intel's Capital Gains party is going end soon - here I was referring to the unrealized capital gains Intel amassed last few years. Intel tapped the existing reservoir of unrealized gains (see column B in the first table) and draining it at a substantial amount each quarter. Thinking that it can be drained at the same rate for a long time, Intel tied these gains to its regular income or the eps it reports every quarter. Because of recent market decline, the amassed unrealized gains shrunk at a faster rate than Intel anticipated. Now, the existing amount of unrealized gains may last only till Q2'01 at the current rate of consumption. There weren't any new high-tech IPOs in the last two quarters - so even if new unrealized gains get added due to any new IPOs in the near future. Intel won't be able to use those gain in time due to restrictions on preIPO participants. goutama