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

To: Jim McMannis who wrote (41620)	12/6/1997 12:44:00 PM
From: Lee Penick	Read Replies (2) \| Respond to of 186894

Jim, Don't believe you are correct...(course I haven't done this stuff for awhile so I could be wrong too)... Items such as Fabs, are capitalized, not expensed. They are payed for with cash, but for earnings reports, you don't subtract it all from earnings in one year, you depreciate it, so it's a non-cash charge against earnings for many, many years. Anyway, is AMD pumping large dollars into FABs, R&D, or other future wealth creating avenues? I don't think they are. So, without profits now, hard to accumulate cash/assets to prosper later. INTEL is effectively stunting (killing) their growth and their future. AMD is as old as Intel, but not near the company Intel is. This business has huge barriers to entry, and large barriers to stay in it and keep up. I think Intel is placing AMD in a position where it won't be able to step over the next few barriers to keep up. AMD is having trouble with .35 but they will need to afford and implement .25 then they need to afford and implement 300mm then Cu is coming sometime down the road, and on and on and on. Do you see a scenerio where AMD can prosper in this environment? Lee