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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (2975)	4/15/2015 10:43:30 AM
From: robert b furman	Read Replies (2) \| Respond to of 26811

Hi Kirk, Intc has and is one of my long term favorites. Their balance sheet is a huge key to their success. Any analyst who has tracked Intc's capital investment policies knows they DO NOT OVER BUILD chip capacity. Two years ago they were criticized for adding so many fab building - no one could figure out where intc would get the volume from to fill those empty buildings. Now they back off Capex and say it is bad news for the equipment makers - my bet is it will be better business as Intc will more than likely spend all of the Capex budget towards equipment and not brick and mortar. To reuse existing equipment is smart and efficient. Brooks has a substantial refurbish business. Cohu's reoccurring kit business represents a steady 40 % of their revenue. Intc stays 1-2 years ahead of their nearest competitor. They are so strong that in the depth of a chip glut, they buildout the next tick tock step because they have the financial strength to invest when others are struggling to break even. To reduce Capex is to be smart. After decades of market share price slashing the memory makers have finally proven that balancing production to demand is a very large part of maintaining profitablility. Intc learned that lesson long AGO. I'd love to see the market flood inot this sector as it has both grown and matured mightily over the last 15 years. Bob