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

To: brushwud who wrote (52106)	8/23/2001 12:37:50 AM
From: tejek	Read Replies (1) \| Respond to of 275872

However the balance sheet indicates the company [INTC] made a profit last quarter so they shouldn't be burning cash. Where did the cash go? Intel has a regular program of spending $1 billion/Q to buy back their own shares. I think it's hilarious that every $28 would earn $1/year in interest if they held onto it, but invested in INTC earned only 3 cents last Q. You're right...I forgot about their buyback program and the shares in the treasury. Would they expense that on the balance sheet, and if so, how would they show it? Intel is sitting on a lot of cash..... on $9.4 billion...they could go for over 3 years at what appears to be their quarterly burn rate. You seem to imply that any level of cash is just discretionary, but every company needs a certain amount of cash just to run their business. I doubt if they'd be very healthy with, say, $3 billion in cash. Yes, I know. Wouldn't that be true for AMD as well? I have no idea what the discretionary number would be for either company so I simply presented a straight forward breakdown of the cash for argument's sake. Thanks for your comments. I forgot you had an accounting background. ted