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

To: Paul Engel who wrote (141288)	8/11/2001 3:58:34 PM
From: Dan3	Read Replies (2) \| Respond to of 186894

Maybe Paul is right... Intel deferred $6 Billion of the costs it incurred as it bought up the companies that make up much of its "other" divisions. Intel claimed that the book value of those companies it bought is $6 Billion greater than the value of their physical assets which is accounted for as "goodwill." Goodwill is the value of an ongoing business and its value as a "brand." For example, a bottling plant may be worth $100 Million, but a bottling plant with the right to label its products "Coke" is worth a great deal more. If you buy such a plant for $500 Million, you list it on your balance sheet as $100 Million in plant and $400 Million in goodwill. And without the goodwill Intel picked when it bought all those new companies over the past few years, its other divisions wouldn't be able to make a loss of $1.25 Billion on revenues of $1.21 Billion. It's hard to put a price on an opportunity that fabulous, but Intel has - they value the chance to lose $1.25 Billion per quarter on sales of $1.21 Billion at $6.28 Billion dollars. It's right there in their quarterly report. freeedgar.com The chance to lose $1.25 Billion per quarter? Intel says it's worth $6.28 Billion - how much would you pay?