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

To: Joe NYC who wrote (127967)	2/21/2001 12:41:56 AM
From: Paul Engel	Respond to of 186894

Joe - Re: "With huge cash reserves, why not do the hiring and buying during the slump, and slow down hiring when it takes a bidding war to gain an employee? I understand that marginal companies have to do it to survive, but why Intel?" How do you think Intel obtained those large cash reserves ? Paul

To: Joe NYC who wrote (127967)	2/21/2001 7:05:18 AM
From: Road Walker	Respond to of 186894

Joe, re: "With huge cash reserves, why not do the hiring and buying during the slump, and slow down hiring when it takes a bidding war to gain an employee?" Productivity is still one of the best (though out of favor) ways to measure the health and performance of a company, sales and profits per employee. It shows a company has the flexibility to handle good and bad times, and thus they are more likely to be a long time survivor. As sales and profits erode this year, Intel needs to reduce headcount, unfortunate but true. If you want to find a good stock to short, look for a company with declining earnings and increasing headcount. They are on a slippery slope and don't have the discipline to adjust to the marketplace. John

To: Joe NYC who wrote (127967)	2/21/2001 9:20:48 AM
From: semiconeng	Read Replies (2) \| Respond to of 186894

One thing I don't understand are the cost-cutting measures at Intel. With huge cash reserves, why not do the hiring and buying during the slump, and slow down hiring when it takes a bidding war to gain an employee? I understand that marginal companies have to do it to survive, but why Intel? Joe Hiring somebody for High Technology costs extra whether or not there's a slump. You can't just go down to the local 7-Eleven and pick yourself up a new Process Engineer. There's still high competition between companies for experienced Technology people. The Projects that are critical to the immediate future success of the company are still being fully funded, but that doesn't mean that a company should go "Balls To The Wall" every time there's a slump. Capital Expeditures, Research And Development, and Construction of Fabs is proceeding as scheduled. If your company experienced a drop in sales, and If interest rates dropped 1/2 a percentage point, would you go out and buy a new house just because you had the cash to do so? Or would you evaluate the NEED for a new house, or do you really NEED that new car, or maybe.... Just maybe.... you might hang on to the money you have in case things didn't get better right away? Just because there's a sale on, and you have extra money doesn't mean you should spend it. Semi