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

To: rkral who wrote (174561)	5/14/2003 1:23:57 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 186894

my feeling is that shareholders demands wrt staffing levels are mostly inappropriate, also demands wrt distributing literally all cash flow for a certain quarter to shareholders in the form of a dividend for a high tech company (basically turning the tech model into a slow growth tobacco or foods-type model) are detrimental to the long term growth of the company. These are the kind of things you see on SI everyday, of course they haven't shown up in the form of a shareholder vote yet, but you get the impression some shareholders think this kind of micromanagement by shareholders is somehow appropriate... personally I don't think it is. Just as an example of the kind of thinking that goes on wrt shareholders... recently there have been questions as to whether tech, as a growth business is "done". Most CEOs and the really skilled business folks in technology, especially those with experience in the PC business from say 20 years ago, know that this retrenchment and mkt fallout is a typical part of the business cycle. This particular recession is much, much more severe than past recessions in tech, mostly because (imo) the internet is a much bigger deal and therefore the initial froth period was more speculative than say, the froth period for PCs which also resulted in a subsequent recession. Still, the same thing is going down, nothing unusual about this recession really. Investors on SI think this is the beginning of the end, and based on that assumption feel that companies should be cut to levels which could never sustain any kind of uptick. Check out the Sun thread for examples of this sentiment. My belief is that the "this time its different" mentality wrt the tech industry is wrong, thats why the CEOs of these companies make so much money because they are smart enough to know that CW is not always right. Personally I don't want shareholders making these sorts of decisions because I think most don't have the education or experience to do so.