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


To: wanna_bmw who wrote (60032)10/24/2001 6:09:16 PM
From: AK2004Read Replies (1) | Respond to of 275872
 
bmw
re: Intel has shown investors that in the worst economic downturn since the Great Depression (in some people's opinion), they can still make acquisitions and turn a profit.
looking at the following chart
siliconinvestor.com
it seems to me that in '00 intel stock growth was unreasonable and it is a natural correction. The unreasonable growth in share price without any substantial economic evidence to back up that growth is what brought us to huge downturn. Intel's actions made it even worse than it should have been.
From risk management perspective optimum behavior should be a compromise between optimizing share value and economic value. You can also view it as short term and long term optimization. Intel and many companies like intel concentrated on short term but that strategy is guaranteed to backfire.
Faced with decaying demand and shrinking market share it was natural decision for intel to try to regain market share during slow down period. That what I would do as well but Intel did not regain market share and hence at least at this point is loosing the price war.
Regards
-Albert