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

To: Dave who wrote (156678)	1/24/2002 8:04:26 AM
From: Dan3	Read Replies (3) \| Respond to of 186894

Re: Didn't you read Edelstone's report? Intel's depreciation expense is going to drop..... Not for years. Depreciation expense is a moving average. Intel's paper costs were lower than their actual costs for the past few years. Even if they can cut capex dramatically in future years (in which case, how will they ever catch up to the SOI production lines AMD is ramping right now?) Their reported costs will still be rising as the paper costs catch up to reality. Even in their most recent 10Q, they are only admitting capex costs at an annual rate of $4.4 Billion while spending this year is forecast to be $5.5 Billion - which means depreciation will continue to rise all year long. Edelstone is something of an idiot. He's the guy who was convinced that Rambus was a steal at anything less than $500 a share. Keep that in mind.