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

To: Road Walker who wrote (137975)	6/22/2001 4:03:47 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

John, RE: And they were not a part of Intel earnings from continuing operations last year, but the market counted them when Intel traded north of $70. And, as it is quite clear now, the market, as well as most of this thread, was mistaken. The market usually doesn't make the same mistake twice. I don't think that many on this thread would, either.

To: Road Walker who wrote (137975)	6/22/2001 4:32:12 PM
From: Win Smith	Read Replies (1) \| Respond to of 186894

And they were not a part of Intel earnings from continuing operations last year, but the market counted them when Intel traded north of $70 "The market" counted them? A little pressure was brought to bear there. This story is dated 7/6/00. Intel leans on analysts to bump up earnings estimates news.cnet.com When Intel announced June 20 that second-quarter earnings would include an additional $1.57 billion from investments, most of the 28 analysts who follow the chipmaker excluded the one-time gain from their forecasts. As Goldman Sachs analyst Joe Moore put it in a June 21 research note, the investments are "non-recurring and not operational in nature." But Intel doesn't take "no" lightly. The Santa Clara, Calif.-based company spent the next week on the telephone, urging analysts to add the gains from sales of investments in companies, such as Micron Technology, to their forecasts, said Chuck Mulloy, an Intel spokesman said. And like dominoes falling, Goldman Sachs, PaineWebber, Prudential Securities, ABN Amro, Gerard Klauer Mattison and others have subsequently raised their earnings estimates. On June 26, First Call/Thomson Financial bumped its average estimate for the chipmaker's profit to 99 cents a share, from 76 cents, after seeing the majority of new estimates include the investment gain. "It makes them look like a joke," said Anthony Crooks, a research analyst with First Call/Thomson Financial, which compiles the analyst estimates. Analysts routinely exclude what are perceived as one-time gains from their estimates to focus on a company's underlying business. Usually companies accept that rationale--but not this time. By pushing the analysts to include a total of $2.3 billion in investment gains in their estimates, Intel will report a doubling of second-quarter profit per share. Without the gains, the company would report a 51 percent increase in profit per share. The investment gains stem from sales of shares in companies owned by Intel Capital, a unit that controls a $10.8 billion portfolio. The bulk of the gains this quarter comes from sales of some of the unit's 6 percent stake in Micron Technology. The gain was almost six times as big as the average investment gain Intel booked in the previous five quarters. Those ranged from $290 million in second quarter of 1999 to $640 million in the first quarter of this year. And so on. Live by the sword, die by the sword comes to mind. But I expect a different kind pressure to be brought to bear this quarter, to erase that inconvenient bit of history recounted above. Who can say, though.