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

To: pgerassi who wrote (172045)	12/1/2002 3:59:32 PM
From: GVTucker	Read Replies (2) \| Respond to of 186894

Yeah, Enron had false profits. Intel is doing the same things. It is also losing money seen by the smaller shareholder's equity each quarter. How a company that is supposedly making money, can lose book value shows how much they are lying to the shareholders. Not necessarily. This depends on why book value is declining. In Intel's case, book value is declining primarily because Intel has been buying back stock at a price in excess of book value per share. This by itself causes a decline in book value. Whether this is a good decision or not is an entirely separate issue. Yes, it is a good starting point of analysis to see that a company with net income is decreasing book value. It is a screen I use for potential short sale candidates. But that by itself is not a reason for alarm.