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

To: BWAC who wrote (182881)	12/12/2005 8:09:52 PM
From: smooth2o	Respond to of 186894

Why? Something wrong with the other $12 Billion of cash and short term investments they already have no use for and no reason not to return to shareholders? ********** They're not comfortable with less than $15B in the coffers <just kidding> They say they are going to buy Intel stock with it. It makes sense, they are approved up to $25B in stock purchases. Why not? They view the stock as a great deal. They have little long term debt. Smooth

To: BWAC who wrote (182881)	12/12/2005 9:40:07 PM
From: Dan3	Read Replies (1) \| Respond to of 186894

Re: Why? Something wrong with the other $12 Billion of cash and short term investments they already have no use for and no reason not to return to shareholders? Must be that most of that is about to be encumbered by the initial judgement in the AMD vs. Intel antitrust lawsuit and Intel needs liquid cash to keep its business running. My estimate has long been that the initial judgement would be against Intel for about $10 Billion and that would later be reduced to $3 Billion on appeal. But they're going to need working cash between the initial judgement and the reduction on appeal. And what if they don't get the reduction on appeal?

To: BWAC who wrote (182881)	12/13/2005 12:50:57 AM
From: The Duke of URL©	Respond to of 186894

I am guessing, but there are two reasons. One, sometime a little debt is done for practice. Buffett does the same thing and Berkshire Hathaway has 43 Billion in cash. But the second reason is more probable. Intel has been given maybe a 3% loan. Using proceeds like this to buy back stock at a time when return on capital exceeds 3%, magnifies earnings an profits and pumps the stock price. Lou Gerstner used this technique to bump IBM stock such that it has split 22 times since 1984 and still trades at twice the amount as the 1984 stock.

To: BWAC who wrote (182881)	12/13/2005 2:44:50 AM
From: Amy J	Respond to of 186894

BWAC, this continues to bug me: Message 21851586 In September, [Samsung] announced an ambitious seven-year, $33 billion capital investment plan that it expects to create 14,000 new jobs in South Korea. Semiconductor revenue will reach $61 billion in 2012 a near quadrupling from 2004. "As of last year we has 26,000 R&D researchers," Lee Yoon-woo, Samsung's chief technology officer, told reporters Thursday. "We plan to increase that to 52,000 by 2010." ...(currently) employees over 113,000 people in 48 countries ---------------------------------------------------------- Regarding Intel's 1.4B loan, my first thought was it's for increasing fab investments. Then I realized 1.4B is pocket change compared to $33B (over 7 years) so it's probably for something else that's smaller, maybe stock options? How exactly does $33B capital investment (over 7 years) stack up compared to Intel's? Is this $33B purely for capital in fabs? Or does it include hiring 14k engineers? Regards, Amy J