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

To: Lizzie Tudor who wrote (177066)	2/17/2004 2:58:37 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Lizzie, re: ...and that is the capex business cycle Where do you think we are in the cycle? John

To: Lizzie Tudor who wrote (177066)	2/17/2004 3:00:18 PM
From: chomolungma	Read Replies (1) \| Respond to of 186894

but there is a larger problem with both stocks INTC and AMD, and that is the capex business cycle. I don't know why you are so worried about this. Capital expenditures should be one of the bright spots in the U.S. economy this year. With the accelerated depreciation incentive, high corporate profits, low cost of capital and the low dollar this should turn out to be a dynamite year for capex. Add to that, the average age of capital stock of the S & P 500 is 6.34 years vs. a 5 year ave. of 5.74 years (source Merrill Lynch)and you have further incentive for companies to be investing in capital. If you're worried about IT spending in particular, the average age, according to ML, is 4.23 years vs. a 5 yr. ave. of 3.39 years. Beyond this year you are just at the beginning of a global upturn and capital equipment is going to be in great demand from developing countries and the low dollar should help cement U.S. companies as the first choice for these dollars. Don't be gloomy now just as things are about to take off!