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

To: Joseph Pareti who wrote (125194)	1/17/2001 8:26:43 AM
From: Road Walker	Respond to of 186894

Joseph, re: "i suppose what makes a difference between a great company and a mediocre one is how fast you pull the plug. The first release of Windows was a flop wasn't it." I'm not talking about pulling the plug today, I'm talking about a sense of urgency to make these businesses profitable. And if they are not going to be profitable, then find a way to get out of the business without too much pain. As far as Microsoft/Windows, that's a different matter. Software is/was the core business for Microsoft. John

To: Joseph Pareti who wrote (125194)	1/17/2001 8:31:27 AM
From: Dan3	Read Replies (1) \| Respond to of 186894

Re: The first release of Windows was a flop wasn't it. Sometimes the difference between a great company and a mediocre one is how long they cling to poor products. Intel's death grip on RDRAM comes to mind here... Dan

To: Joseph Pareti who wrote (125194)	1/17/2001 8:53:47 AM
From: Road Walker	Read Replies (2) \| Respond to of 186894

Joseph, Other sequentially went from 19.4% of revenues to 21.3% of revenues. Other's sequential loss went from 36.9% of other's revenue to 40% of other's revenue. The effect of other's loss of $741 million is about 10 cents per share this quarter, say 40 cents a share annualized. At 20 times earnings, that's eight bucks, or about 20%-25% of Intel's stock price (depending on if you are looking at gross or net %). I admit this is a simple analysis, if Intel revenues were declining, as they would be with IAG alone, would that lower the PE? The point I'm trying to make is that "other" is a very, very important part of the value of Intel as a company. An argument could be made that it is the most important, because it is the most significant variable. What are Intel's real IAG gross margins, without the drag of "other"? John