Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (45993)	7/3/2001 8:17:26 AM
From: niceguy767	Read Replies (1) \| Respond to of 275872

Paul: "Re: "It sounds a little bit bearish, but Q3 will be a very challeging quarter. The ASP will definitly go down and not 1 or 2 bucks - it will be 5-10$ I think - and when the overall CPU pieces goes not up in a big way, I can now see the earnings problems for the future. Not nice. " Niceguy won't like - or believe - this !" Still thinking AMD's earnings will come in about 7.5 times your q2 top estimate of $10 million or around $0.25 eps vs. your max estimate of $0.03/sh...Certainly don't think INTC will come in at $700 million in q2 or its equivalent of $0.11/sh...

To: Paul Engel who wrote (45993)	7/3/2001 8:33:10 AM
From: niceguy767	Read Replies (1) \| Respond to of 275872

Paul: "That said, the competitive pricing is pounding Intel's bottom line. In the first quarter, Intel's gross margin fell to 52% from 63% in the fourth quarter, as chip prices fell. The company says margins will be about 49% in the second quarter ended last month. Narrowing margins have stung earnings: According to Thomson Financial/First Call, analysts expect Intel to make 11 cents a share for its second quarter, down from 50 cents a share a year ago. Intel is due to report second-quarter earnings July 17." Margins have shrunk from 63% to 49% in 6 months...Ouchhhhh! EPs has declined from $0.50 to $0.11 ($0.11 when margins were 52%)...Ouchhhhh!...And P4 shows no discernible sign of bucking this unfortunate trend as its price keep sliding and sliding and sliding in hopes of finding buyers at any price point. In fact, if P4 doesn't get off the gound in the next 6 months, (and it just might not), INTC could be in a heap more of trouble than it currently finds itself in as the company's near term future is tied very directly to the P4's health!