Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: fingolfen who wrote (172100)	12/4/2002 11:46:41 AM
From: GVTucker	Read Replies (3) \| Respond to of 186894

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). Not true. You see impairment charges on unrealized losses all the time. Tax basis does not equal financial basis.

To: fingolfen who wrote (172100)	12/4/2002 11:58:23 PM
From: Dan3	Respond to of 186894

Re: investment... data could be devastating to your theory, and should be accounted for. Well Intel didn't start breaking out "Intel Capital" until two quarters after Q3 of 2000 (which was where I started my 2 years of analysis). From when they first started reported on Intel Capital (this covers 6 of the 8 quarters in question) that line item went from $3.3 Billion to $1.3 Billion, which would explain $2 Billion of the loss. Most of their cash is held as "cash and short term investments" (usually means T-bills) which shouldn't be much affected by the market decline unless their money managers are incompetent or crooked. Lets double that 6 quarter $2 Billion drop to $4 Billion for 8 quarters, what the heck, give them the benefit of the doubt. Then you can add in the Billion per quarter they piss into the wind buying their shares on the open market (paying some huge multiple of book value) - they may as well just buy stacks of thousand dollar bills and burn them, but it explains some of the GAAP discrepancy. So, now you've explained how they got away with hiding $12 of the $18.6 Billion in losses from GAAP - how'd they cover-up the other $6.6 Billion in losses?