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: Amy J who wrote (132036)	4/10/2001 2:04:23 AM
From: Car L	Read Replies (1) \| Respond to of 186894

Taipei, April 10 (Bloomberg) Intel to Introduce Latest Pentium 4 Processor Earlier, Cheaper look for Intel News on Bloomberg.com for the whole report. or ctech.com.tw

To: Amy J who wrote (132036)	4/10/2001 2:11:16 AM
From: Scumbria	Read Replies (1) \| Respond to of 186894

Amy, Your post was another attempt at derailing the conversation from the position you took (which was, that Intel's cash portion isn't good) when in fact it is the best in the industry, as already pointed out repeatedly Utter nonsense. Scumbria

To: Amy J who wrote (132036)	4/10/2001 8:56:06 AM
From: Dan3	Read Replies (3) \| Respond to of 186894

Re: position that Intel's cash portion isn't good, when in fact it is the best in the industry No argument on the literal interpretation of that statement, but Intel's cash position relative to the rest of the industry has changed. Intel came in to 2001 with a plant that was outmoded compared to earlier years, and that has put them into a period of forced capital spending. Much of Intel's present plant was made obsolete when AMD started shipping volume from its Dresden plant. Yet Intel's Balance sheet shows a $3.3 Billion increase in the value of that plant - where it should have shown a decrease of about the same magnitude. Intel will either have to continue depreciating worthless plant, which will drag down earnings for years, or take a one time write down of its assets. And this is not reflected in the pro forma cash position. Even though Intel showed the value of its plant as up instead of down last year, and reported $10.5 Billion in earnings after taxes, current assets - current liabilities (available cash) was basically unchanged for the year 2000. This year, revenue is going to be way down, while neither investment nor operating expenses can be cut. Investment can't be cut because AMD effectively wiped out much of Intel's current plant through Dresden making it obsolete - they have got to build plant that can compete with AMD. Operating expenses can't be cut because Intel must push several times as many wafers to get the same number of P4s as PIIIs. Meanwhile the dot.bombed investments will make bigger losses this year than last, and the losses from the investment portfolio show no signs of ending. Intel's primary competitor AMD, has gone from near bankruptcy to having a solid cash position that continues to improve. So while Intel still has an excellent cash position, it is eroding at incredible speed, and most important of all, no longer qualitatively better than its competitor's. Quantitatively, Intel's cash position still dwarfs AMD's, but in terms of its effect on the two companies, that once very significant difference has all but disappeared. Regads, Dan