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

To: maui_dude who wrote (153329)	12/29/2001 9:55:54 PM
From: bambs	Read Replies (1) \| Respond to of 186894

pardon me for looking at intel as having less then 1% actual earnings per share, enough shares for everyone on the planet to own one, flat to negative revenue for 3 years + years, profits declining, record high valuation, rising cost of sales, and in a price war with amd. Might I also add that there is very little business case for upgrading pc's now. Y2K is behind us. There is little to no benefit for upgrading the average employee's pc! (you tell me why any employee needs to move from a PIII 400 to a P4 2gig. will it improve there productivity?) As for upgrading at home...only to make the pc a better toy. The US consumer is loaded with debt. Mortgage rates aren't coming down anymore, Unemployment will continue to rise in 2002. the fed's hands are just about tied. The bankruptcy's and lay offs will increase in 2002. INTC is a short. I'm sorry you don't see it that way. I do, and I'm not one to let a bear market prevent me from making money. Good luck, Bambs

To: maui_dude who wrote (153329)	12/30/2001 10:19:37 AM
From: Dan3	Read Replies (1) \| Respond to of 186894

Re: When the revenue drops, most of the income disappears. But the same logic works in reverse. What you've failed to consider is that current capital costs are not included in Intel's earnings statements - as is proper, since they aren't "used up" in the reporting period. But they are "used up" over a period of several years. Once those costs have been incurred, they impact earnings for years - and those costs have been incurred, and they haven't yet had the chance to impact earnings. This is one of the strategies Intel used to report earnings this year, at the same time its balance sheet was indicating losses (another strategy was treating employee compensation that was in the form of stock options as though it were not a cost). Capex costs impact earnings, for the most part, as a 5 year moving average, that cannot fall significantly for years - even if they cancel 100% of their capex projects.