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To: Petz who wrote (21325)	12/1/2000 3:38:11 PM
From: Joe NYC	Read Replies (1) \| Respond to of 275872

Petz, I'm wondering whether Intel is in danger of having to report an $ X00,000,000 realized loss this quarter like Gateway just did. If they did, I am sure it will be reported as a one time charge <g> Joe

To: Petz who wrote (21325)	12/1/2000 5:16:59 PM
From: tejek	Respond to of 275872

At this point in time, is it even possible for Intel to come up with their predicted amount of capital gains for Q4? Petz, Did you see the large drop in Intel stock today? It broke thru its old low. I think the market's answer to your question is "no". ted

To: Petz who wrote (21325)	12/1/2000 5:21:26 PM
From: Goutam	Read Replies (1) \| Respond to of 275872

Petz, re: <At this point in time, is it even possible for Intel to come up with their predicted amount of capital gains for Q4?> Good question. I started this post with an impression that Intel won't have any problems meeting its investment gains' goals till Q2'00. But after doing some number crunching, I realized Intel may have difficulty meeting its goal this quarter alone, if things stand as they are today until the end of this quarter. They still have some unrealized gains left in their portfolio, so they don't need to take any losses. As of today the shadow Intel capital portfolio value stands at 46% of total cost. If we extrapolate it to Intel capital's total carrying value as of sep 29, it would come to $4,548 * .46 = $2092.08M. That means, Intel capital still has unrealized gains of $2092.08 - $1,648 = $444M ($1,648 = cost of Intel Capital portfolio). Intel's guidance for Investment gains for this quarter is about $760M. Wow, $444M unrealized gains left is way lower than I expected. It seems Intel's capital is in more dire situation than I initially thought. Intel Capital gains party may come to an end a lot sooner than I expected(Q2'01) few weeks ago. Since they tied capital gains to their eps, they have to sell irrespective of the market conditions to support their eps. I don't think Intel saw this kind of scenario (steep market down turn) when it tied the capital gains to its eps. Now the company has to sell all the winners from its portfolio leaving all the losers in it which may not bode well in the future if and when the market recovers. By the by, most of the privately held companies in their portfolio are Internet related. I don't think most of them would be able to go public in the future given the market's lost interest in DOT-COMs. goutama