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

To: Dan3 who wrote (146160)	10/28/2001 6:59:55 AM
From: Dave	Respond to of 186894

Dan, There are many ways to try to determine the "health" of a company. first all, instead of looking at absolute numbers, look @ percents... I'm assuming that this figure you posted is: Cash, cash equivalents and ST Investments... End of 2000 End of Q301 Change AMD 1.25B 905M -345M INTC 13.823B 9.82B -4.003B Now, for AMD, that position declined by 27.6% and intel's declined by 28.95%. I disagree with that author's representation. Don't look @ Intel when you try to determine AMD's financial health. Look @ your own company, unbiasedly. I can assure you that Intel is a financially less risky investment...

To: Dan3 who wrote (146160)	10/28/2001 7:23:59 AM
From: Dave	Read Replies (1) \| Respond to of 186894

Dan, I will post a few concerns that I would have if I was an investor in AMD, but let us compare and contrast with Intel... Both company's have not provided their cash flow statements, but those should be provided when they release their 10Qs. Gross Margins: AMD: 22.43% Intel: 45.7% (Remember, the higher gross margins are the better)... TIE (Times Interest Earned) Ratio, defined by Operating Income (Earnings Before Interest and Taxes, or EBIT) divided by Interest Expense. AMD: N/A (AMD had negative operating income even when one excluded one time charges...) Intel: 5.56 This ratio is important since it defines how many times over a corporation can earn its quarterly interest expense. Remember, each Quarter, interest is payable to its debt holders... Those, imo, are fairly important ratios to determine the relative health of a company. AMD cannot afford to fight a price war with Intel and should not.