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


To: Dan3 who wrote (172091)12/3/2002 11:26:18 PM
From: The Duke of URLĀ©  Read Replies (1) | Respond to of 186894
 
Uh, wasn't it Carly Simon who said,

"DEPRECIATION, depreciation is making me late".

Without looking, the reason Plant and Equipment goes up is that the bought/built more, one (non cash) reason it goes down is depreciation:

Credit building, debit depreciation expense, CREDIT RESERVE FOR DEPRECIATION, debit Owner's Equity, and like that.



To: Dan3 who wrote (172091)12/4/2002 11:24:20 AM
From: fingolfen  Read Replies (2) | Respond to of 186894
 
The original hypothesis is wrong. Intel did not make $8.6 Billion during the past 2 years, as they claimed. In actuality, they lost $10 Billion in the past 2 years.

Okay, so now you have a working theory. Great! Now that theory must undergo further testing. Looking at your methodology, I notice a major hole. You talk about assets and the value of assets. Included in that number is "investments". You don't take a loss on an "investment" until that investment is sold (otherwise I would have had some huge tax write-offs in the last year or two). You do not, however, investigate fluctuations in Intel's investment portfolio before reaching your conclusion. In my mind that's shoddy technique. I therefore believe you should look into this portion of assets in order to strengthen your theory.

Because you don't take a loss on an investment until it is sold, it is entirely possible to make money, yet have one's net worth decrease. This piece of data could be devastating to your theory, and should be accounted for.