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


To: Road Walker who wrote (168383)7/16/2002 7:43:41 PM
From: wanna_bmw  Read Replies (1) | Respond to of 186894
 
John, Re: "This has been going on for years. Intel invested over $12Billion in those businesses. All they do is lose money. Intel doesn't trade on their revenue numbers."

I think that the continued losses from these businesses are the result of bad timing, rather than the strength of the relative product lines. Long term, it's a better idea to have this kind of diversity, but growth in these businesses have stalled due to the downturn. Intel couldn't have predicted the burst of the Internet bubble, because no one predicted it. The entire industry kept on going until things started crumbling, and by then it was too late.

But several quarters, and many re-orgs and fine tuning later, Intel has some very solid product lines that have already made them #1 in the communications segment. Now, if anyone were buying, Intel would be making sizable profits here.

Re: "When does the future get here? Intel would probably be a $50 stock (considering the original investment, the losses over the years, the reduced eps, the lack of focus) if not for Barretts great adventure. As a stockholder, yes, I am impatient."

Be careful not to confuse the price of the stock with the state of Intel's communications businesses. INTC is low right now due to lower market demand, terrorism, scandals on Wall Street, and uncertain earnings. Now, the veil is being lifted, and forecasts are looking brighter. Nothing is for certain, but people may see this as a good sign. I don't see how Intel could have avoided falling below $50 solely because they stayed with the microprocessor business, rather than expanding to new markets. They would have sunk along with the rest of the industry regardless, IMHO.

wbmw