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

To: Dave who wrote (137099)	6/10/2001 4:14:07 PM
From: Dan3	Read Replies (2) \| Respond to of 186894

Re: I don't see a big deal in your arguments. It's the rates of change I find most interesting. It would be nice if the companies would break out property (reasonably depreciated over 30 years, if ever), plant, and equipment being carried on their books. Internally, these components are depreciated at different rates. There is a residual of plant in the numbers from both companies, which should be subtracted out for analysis, but we don't have that information. We do know that Intel is finding a large capex rate increase necessary while AMD is not. Intel's revenues have been dropping even though it is still able to garner monopoly profits in the SMP and mobile segments - the new plant coming on line will not be operating in that environment and will have to "pay for itself" in a tougher operating environment. I think Intel is setting itself up for a fall. Regards, Dan PS - I mean monopoly profits from SMP and mobile in the economic sense, not the legal sense. Just as Intel has been seeing more of a market rate of return on investment from its desktop processor business since AMD began offering competitive products, so would I expect Intel's current very high rates of return from SMP and mobile products to approach market rates in the time frame in which that new plant is coming on line.