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

To: David S. who wrote (44193)	1/6/1998 7:03:00 PM
From: Joe NYC	Read Replies (2) \| Respond to of 186894

David, Intel undoubtedly has very careful plans for such expenditures and they must know it is there in earnings even if they haven't told us yet. Here is a quote from recent Business Week article: 'It's a risk to go out and spend billions of dollars on these manufacturing plants,'' concedes Intel President Craig R. Barrett. ''But if we didn't, we couldn't possibly reap the benefits. We're going down the road at 150 miles per hour, and we know there's a brick wall someplace, but the worst thing we can do is stop too soon and let somebody else pass us.'' Joe

To: David S. who wrote (44193)	1/6/1998 7:42:00 PM
From: Tony Viola	Respond to of 186894

David, >>Tony Viola, you don't have to defend fatuous arguements about the 5.4 B capital spending program. Intel undoubtedly has very careful plans for such expenditures and they must know it is there in earnings even if they haven't told us yet.<< I agree, in fact my first post was going to be that this 5.4B capital expenditure for next year is no surprise for Intel. You don't budget for the current year in January. You do it starting early in the previous year. And, you have long range plans of years. I'm sure that number (5.4B) has been known at Intel for quite a while and maybe just tweaked late last year. However, when I saw someone twice say that Intel had to increase revs by 50 billion to keep the same rev to capital spending ratio, my fingers sprung for the keyboard. Couldn't stop. BTW, if you increase spending 20%, you need to increase revs by the same percentage to keep the ratio we're talking about constant. That would be about 24B times .2 or about 4.8B. This may be tough, but, like you said, I'm sure Intel has done their budgetting very carefully. Tony