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

To: ptanner who wrote (49356)	7/29/2001 9:45:29 PM
From: brushwud	Read Replies (1) \| Respond to of 275872

Re: "Cash flow = Profit + Depreciation & amortization" ...shouldn't we include some other significant items like: minus share repurchase (an ongoing "expense/investment/payroll" for INTC to the tune of $1B/QTR) minus capital investment (an ongoing requirement in this industry and about equal to depreciation for AMD at the moment while Intel is reinvesting from its large accumulated cash position) I assume your "amortization" includes the goodwill writeoffs. Yes, goodwill is amortized. Actually, both AMD & Intel had capital investments greater than depreciation last Q, and, as long as they keep growing their respective plants, will continue to do so. There are other sinks & sources of cash such as Intel's dividend and both companies' ESPPs and option exercises. Intel's capital investment for 1H2001 was unusually high, but it is receding to a more usual amount. Their share repurchases are their most questionable use of cash, particularly since their earnings are so meager. If I were an Intel shareholder, I'd ask Arthur Rock what he thinks about it at an annual meeting.