Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: michael97123 who wrote (130362)	3/19/2001 11:53:26 AM
From: Lazlo Pierce	Respond to of 186894

There was a couple of pretty negative articles mentioning Intel in Barron's over the weekend as well. interactive.wsj.com I'll post a little of them. The title of one is "Cheap Enough Yet? -- Cover Story - Andrew Bary "The latest bloodshed in tech stocks has convinced some investors that the sector is cheap. But there are big differences among the group's members. Why Cisco and Nortel look better than Intel." Its a longish piece that talks about some of the tech blue chips, their valuations and prospects going forward. One of the sections on Intel is as follows: "......Intel, as noted above, has held up well this year, declining 7% to around 28, despite a sharp reduction in 2001 profit estimates to 71 cents a share from over $1.50. Intel's price/earnings ratio, which stands at 40, hasn't declined much since the stock peaked at 75 in September because of plunging profit estimates. Back in September, Intel fetched 45 times its eventual $1.65 a share in profits for 2000. Those 2000 earnings, which were boosted by about 35 cents in investment gains, could be a high-water mark that Intel may be unable to top for many years. If it earns 71 cents a share this year, Intel's profit will roughly match what it earned back in 1996. At this point, Intel may be trading more based on its stellar reputation than anything else...." The other talked about VCs, especially in large tech companies, and the effect they will have on earnings. Here's a little of that one. interactive.wsj.com "..... Chipmaker Intel, one of the first corporate VCs, has a strategic equity portfolio with stakes in more than 550 public and private companies. Though only a handful are public, at yearend 2000 the two portfolios were valued almost evenly, at $1.9 billion in marketable securities and $1.8 billion in non-marketable securities. Intel carries marketable investments at the lower of cost or market value, but generally does not adjust private valuations. A spokesman argues that Intel Capital, the company's investment unit, creates value for shareholders beyond the immediate worth of a given private investment. As of December 31, the Intel portfolio included approximately $290 million of net unrealized gains on marketable securities. Applying the Nasdaq's 15% year-to-date loss to Intel Capital's marketable securities would wipe out those gains, and then some. Given the rising importance of venture-capital gains to the company's earnings, their expected disappearance could have a pronounced effect on Intel's earnings. Last year, the company realized investment gains of $3.7 billion, equal to a third of reported net income of $10.5 billion. The prior year, portfolio gains accounted for only 12%, or $883 million of reported income....." Dave

To: michael97123 who wrote (130362)	3/19/2001 11:53:53 AM
From: kapkan4u	Read Replies (3) \| Respond to of 186894

<Is Kumar the only cause of this drop today? If so, even in this environment it seems much overdone> Am i missing something else? > Intel is probably leaking the bad news to Kumar to deflate the stock before the Q1 earnings report. They are trying to establish a base in the high teens and to avoid a crash into the single digits. If Intel is experiencing cash flow problems, we can see single digits very quickly. Looks like INTC may catch up with AMD stock price today. Kap