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

To: maui_dude who wrote (124283)	1/5/2001 1:03:23 PM
From: Hightechhooper	Respond to of 186894

Maui, I think INTC better cut capital spending versus 2000. I remember in early 1998 when everyone was selling INTC on the rumor they were going to cut capital spending and they had a hiring freeze. Finally, when they did the conference call the stock rallied furiously. It seems like they could spend the money on the longlead time aspects of capital expansion (site selection, site developemnt, build out the shell) and then they can have everything ready for adding equipment later. This will also allow them to buy the latest technology and accelerate 12 inch implimentation. Overall, I think it would be a good thing especially if they can combine the news with a faster ramp of .13 which, they could argue, pushes out the need for capacity gains through new facilities. have a good day,

To: maui_dude who wrote (124283)	1/5/2001 1:08:09 PM
From: Gary Ng	Read Replies (1) \| Respond to of 186894

maui, Re: I wonder how the market might react (short-term) if Intel decides to reduce the cap ex for 2001 ? Any Thoughts ? To repeat the problem of late 1999/early 2000 of not enough capacity ? gary

To: maui_dude who wrote (124283)	1/5/2001 1:49:02 PM
From: L. Adam Latham	Read Replies (1) \| Respond to of 186894

maui_dude: Re: So, if Intel does decide to trim their cap ex (like they did in 1998) to $4B, this could give a boost of about 25c to their 2001 earnings. How are you coming up with this? Capital expenditures are not reported on the earnings statement, but rather show up on the balance sheet. The effect of this year's capital expenditures will show up in future years' income statements in the form of depreciation expense, in both the Cost of Sales and Research and Development entries. The main short-term effect of a capital expenditure reduction will be a larger cash entry on the balance sheet. Adam