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

To: hmaly who wrote (82607)	6/16/2002 1:03:48 AM
From: Dan3	Read Replies (3) \| Respond to of 275872

Re: CAPEX includes the FABS and land, which don't depreciate in reality near as fast, and do add to Intel's assets. Most of the $14 Billion spent over the past 8 quarters went to re-equip or rebuild FABs on existing land. Intel did put up several completely new FABs. Do you think they paid $2 Billion per lot and building shell? $1 Billion? If it's much less than that, it fades into irrelevance, given the magnitude of Intel's capex expenditures. The percentage of Intel's capex that is spent on things that don't depreciate is pretty small. That's why I think they should be recognizing as much in costs as they have to spend each quarter to keep their plant current - especially when the revenue from that plant has been shrinking, not growing. Take the perspective of an accountant, or, better yet, a micro-economist, not a book-keeper.