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

To: Amy J who wrote (136999)	6/8/2001 9:04:21 AM
From: Dan3	Read Replies (2) \| Respond to of 186894

Re: after a contraction and during a recovery to R, the expenses tend to be (X - cuts) I agree with pretty much your entire analysis. But I disagree on your unstated assumption which is that Intel is cutting costs during this slowdown. They are in a capital intensive business and have been substantially increasing their costs over this period. Which I think will greatly reduce the profitability gains they could see in an upturn 2 years from now. It's AMD that has been holding constant or cutting costs during the slowdown. Check out change in the ratio of sales to undepreciated costs through the period - those undepreciated costs will have to be recovered during the next upturn before substantial profit gains can be made. Regards, Dan