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

To: Joey Smith who wrote (136521)	6/3/2001 7:34:56 PM
From: Dan3	Read Replies (2) \| Respond to of 186894

Re: I went short on AMD recently. Congratulations! Hopefully, there are many more just like you. There are few things that can catapult the price of a stock higher than frantically covering shorts, so your post is music to the ears of us AMD longs. Regards, Dan PS - I probably shouldn't bring this up, but for the past few quarters AMD has been present only in the desktop segment. Intel has been free to cut prices on desktop CPUs to near or below cost and still make some profits by charging a lot for mobile CPUs. But now notebooks from Compaq and Sony have begun trickling in are already impacting what Intel can charge for mobile CPUs, and hence what revenue is available to subsidize desktop sales. AMD is also entering the server market, but, let's face it, margins in that market already died all by themselves. Intel faced a brutal price war with AMD on the desktop (about 50% of profits) and the server market tanked by itself (about 25% of profits). What was left was the mobile market (about 25% of profits) and that's what Intel was able to make last quarter - about 25% of what they'd been making previously. Now AMD is extending their price war to mobile chips - this is the last quarter Intel will have even 25% of their market as profitable. All this at a time when Intel costs are rising quickly due to the size of the P4 die and the need to catch up with AMD's copper FAB technology. There is definitely a shorting opportunity here, but I think you picked the wrong stock. But don't listen to me, we AMDroids don't have a clue, right? You should short more AMD shares, lots more. Do it Monday, first thing.