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

To: Dan3 who wrote (156683)	1/24/2002 8:27:40 AM
From: herb will	Read Replies (1) \| Respond to of 186894

Dan, "Edelstone is something of an idiot." Coming from you Dan, that is really funny! Herb

To: Dan3 who wrote (156683)	1/24/2002 8:58:04 AM
From: John F. Dowd	Read Replies (1) \| Respond to of 186894

Dan3: At the risk of demonstrating my ignorance what is an SOI production line? And what is to prevent INTC from upgrading their existing facilities with the 5.5 bill. to achieve equal efficiency. I can't imagine INTC is not as clever as AMD or you or me. JFD

To: Dan3 who wrote (156683)	1/24/2002 9:55:37 AM
From: Dave	Read Replies (1) \| Respond to of 186894

dan, 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. SOI this, SOI that. The end user does not care. AMD had a .25u process for the K6, didn't help them when they had sub 2% yields. Message 16943707 Looking at Morgan Stanley's report, Mark Edelstone notes that his only concerns are "overall economic performance and its impact on PC demand" and "potential double ordering given P4 allocations". Regarding capex, Edelstons says, "Finally, Intel's capital spending budget of $5.5 billion is expected to decline 25% in 2002 (versus our estimate for a 20% decline), and this sharp decline suggests that Intel's depreciation expense (30% of COGS) will begin to decline as a percentage of sales during the next couple of years." This is noted in the positives.