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 : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: TideGlider who wrote (8985)	11/11/1997 9:48:00 AM
From: Paul Dieterich	Read Replies (2) \| Respond to of 25960

Slightly Off Topic: An object Lesson about analysts' motives. I'm posting this article from the WSJ about Intel's FOOF bug to illustrate how brokerage house analysts leverage "truth" and why: Intel Says New Flaw Found In Pentium Chip Dow Jones Newswires -- November 10, 1997 By Johanna Bennett NEW YORK (Dow Jones)--Intel Corp. (INTC) has uncovered a new glitch in its Pentium processor that could allow someone to intentionally crash a company's computer system. Tom Waldrop, an Intel spokesman, said the company is working to fix the bug, identified by several on-line bulletin boards as "FO" or "FOOF." The glitch, which affects Pentiums both with and without MMX technology, involves a single instruction that is not found in software that is purchased. But it could be intentionally inserted into a company's server, locking up the system, Waldrop said. The company expects to have an update on the fix for the flaw within a week, Waldrop said. Intel spokesman Waldrop refused to characterize the flaw's seriousness, saying only that "we will simply provide information about this erratica and let others make that decision." Intel has shifted its focus away from the Pentium and toward the newer and more powerful Pentium II, which doesn't have the glitch, according to Intel. The company refused to reveal how many Pentium machines are now in the marketplace. On-line news services began reporting Friday the existence of the Pentium "FO" or "FOOF" bug, which reportedly can freeze up Pentium MMX and "classic" Pentium computers, machines that number in the millions world-wide. Waldrop said Intel learned of the problem Friday via the Internet and began investigating. Opinions among analysts were mixed, although most interviewed said they doubted that news of the flaw would seriously affect Intel's financial performance. Bugs in computer chips and software are not uncommon and easily fixable. And with the Pentium chip entering its fifth year, it is unlikely any major glitches remain undiscovered, industry experts said. "The mere fact that Intel has sold millions of these and the world has not come crashing down around their feet tells me that it is probably something they can work around," said Scott Randall, an analyst for SoundView Financial Group Inc. Also, Intel's track record in these matters has improved since 1994, when the company was buried under an avalanche of bad publicity for the way it responded to news of a flaw in the Pentium chip. But according to one analyst, who has a short position on Intel and has issued a short-term buy recommendation for Intel's competitors, Advanced Micro Devices Inc. (AMD) and Cyrix Corp. (CYRX), the new Pentium bug is a devastating revelation. "This is probably the worst problem in the history of Intel," said Eliot Glazer, vice president of research for duPasquier & Co., a New York-based firm. He believes the solution will cost "tens of millions" of dollars and could take four to six months to fix. Glazer said his 1997 earnings projection for Intel, which was $3.75 a share, will be lowered about 10%. Intel stock recently was off 2, or 2.6%, at 75 7/16, on Nasdaq volume of 17.62 million shares, compared with average daily volume of 17.6 million. -Johanna Bennett; 201-938-5670