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

To: Saturn V who wrote (136025)	5/24/2001 11:35:44 PM
From: The Duke of URL©	Respond to of 186894

semi OT Federal Reserve Chairman Alan Greenspan's message Thursday night wasn't as optimisitic as other Fed officials earlier in the week. Greenspan says weakness remains Fed chairman indicates recession remains a reality msnbc.com

To: Saturn V who wrote (136025)	5/25/2001 1:45:39 PM
From: Road Walker	Read Replies (4) \| Respond to of 186894

Saturn, re: "Andy Bryant explicitly stated that until a few months ago the Networking Division and the Mobile Communication division were proftable. The Losses were due to Internet Services, goodwill and other corporate expenses (bonuses) being lumped into "Other"." Note that he said the "Networking Division and the Mobile Communications division". Does that include the non-mobile communications businesses, where Intel has made the majority of it's investments? Mobile communications, at this point, is primarily flash, which should be profitable. And if the Networking division is also profitable, imagine what Intel would have to lose in Internet Services to create a loss of $1B on $1.5B in sales, if the rest of the new communications business was even close to being break even. The losses in "other" this past quarter increased despite the fact that they stopped lumping most corporate business expenses into "other" (see the final paragraphs of last quarters earnings release). That's a good excuse for prior quarters, not this past quarter. re: I felt reassured by Craig's statement that Intel would exit the communication market segments in which it could not be No.1 or No.2. [a la Jack Welch at GE ]. That good news. I hope they are talking about profit, not just revenue. I have no problem with Intel investing in other businesses. But there needs to be an end game to profits, otherwise its a pointless waste of shareholder profits. There are good arguments that Intel should have bought a larger, established and profitable communications company, and added smaller companies as needed. The approach of buying dozens of smaller companies and trying to fit the pieces together into something coherent may not be the best strategy, certainly not the easiest. Another argument is that 10-12 years ago less than 1% of the population had an Internet connection or a cell phone, and the major growth in communications was a one time build out. That from now on most growth in that business will be cyclical and much less dramatic. It could be a slower growth area, with a longer cycle, than microprocessors. I'm not informed enough to comment on either argument. But I know that I wouldn't own stock in a company that was losing $1B on $1.5B in sales. Andy's favorite Webvan does (did?)better than that. IAG's tremendous cash flow can hide a lot of stuff you wouldn't tolerate in an independent company. But as shareholders we shouldn't let it hide or excuse bad decisions and bad management in areas other than IAG. John