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To: Joe NYC who wrote (201681)	6/12/2006 1:15:22 PM
From: Joe NYC	Respond to of 275872

Analyst Calls Intel Shares 'Dead Money' Kate DuBose Tomassi, 06.12.06, 10:03 AM ET With the personal computer market for June looking "increasingly bleak" for Intel, RBC Capital Markets recommended investors use rallies to sell shares of the chip maker. Intel's June quarter is tracking at the low end of guidance, and may miss earnings, according to RBC analyst Apjit Walia in a report Monday. The market for PCs is "in the doldrums" and getting "progressively worse," he said. In addition, Intel's current price war with Advanced Micro Devices (nyse: AMD - news - people ) is allowing Intel to take back some unit share but not revenue share, he said. He added that AMD is "also suffering from the bleak end demand environment." Walia recommended investors sell Intel stock, saying that "there seems very little chance of Intel's gross margins bottoming before end of the September 2006 quarter." He also characterized the stock as "dead money." RBC rates Intel (nasdaq: INTC - news - people ) "sector perform" with a $21 target price. finance.yahoo.com

To: Joe NYC who wrote (201681)	6/12/2006 1:27:13 PM
From: dougSF30	Read Replies (1) \| Respond to of 275872

Joe, showing 90nm NetBurst parts for sale has nothing to do with whether Intel is still PRODUCING them. I'm sure they are selling them, burning off old inventory, as they said they would: Anand Chandrasekher, on after Otellini, claimed that Intel's market share loss stabilised in the first quarter of 2006, and that his firm is positioned to regain market share in the second half of this year. Intel had lost market share and there was an inventory buildup. Its twin engines of growth - emerging markets and notebooks are still intact, he said. Intel will "burn off inventory" that has accumulated during the second quarter. The inventory accumulated as a combination of customers demanding more during stock constraints, a moderation of market growth, and "down channel" inventory growth. Customers were taking more product from Intel than the market wanted. Intel was constrained for the bulk of 2005 so its customers carried a "longer pipeline", said Chadrasekher. That introduced "cloudiness" into the market. The new products Intel is introducing will prompt its customers to "burn off" the stock. He said Intel will clear out the excess inventory of several million units during Q2. theinquirer.net