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 : AMD:News, Press Releases and Information Only! -- Ignore unavailable to you. Want to Upgrade?

To: Larry Loeb who wrote (3755)	1/13/1998 9:34:00 PM
From: Buckwheat	Read Replies (1) \| Respond to of 6843

Larry,,, a few thoughts on INTCs 3 million notebook CPU cancellation: 1) This represents 15% to 20% of all notebook CPU requirements for all CY 98 (according to whose market estimates you believe) 2) These aren't Tillamook CPUs. (Currently the most marketable in high-end notebooks) 3) Intel mobile processors are just that and aren't likely to be used in other type computers. 4) Rock bottom mark downs are likely any day for 133, 150, and non-Tillamook 166 mobile processors. 5) Introduction of Deschutes mobile processor will put more downward pressure on all pre-Deschute mobile processors. 6) INTC's $514 million FGI doesn't look out of line dollar wise, but if it's largely obsolete mobile Pentiums instead of 300 or 333 mhz PIIs, then that is significant. My guess is that since Intel has already forecasted flat earnings for 1Q 98, they will quitely take a 1Q write-down on cancelled CPUs. What do you think? Buckwheat

To: Larry Loeb who wrote (3755)	1/14/1998 1:58:00 AM
From: greg nus	Respond to of 6843

Larry, I have not had a chance to study the Intel results. However the $.98 is down form last year $1.06 year over year. Looking forward Intel is indicating flat earnings for 1st qrt. Margins has contracted to 55% down from 60%. also Intel indicates hanging their hat on European expansion to outway Asia shortfall. European economies are at best weak. Unemployment is at historical high levels. Prices there are high. Interest rates are higher. In short I do not find much comfort nor confidence in Europe going forward. Traditionaly Europeans are heavy investors in Asia. I would have to guess asside from Asia itself Eupope and the templeton fund are the next big losers from the securities meltdown. On a micro basis look at Dresden where three new simi Fab are under ocnstruction. Unemployment there is over 16% about 50,000 even with the fabs fully staffed unemployment will still be over 12% and Dresden will have to do much much more to reach normal employment levels. It s the same in Spain, France, Belgium The rest of Germany Italy not to mention the low countries why are even higher. I would not want to brag about growth prospects in Eurpoe on a come back to support my loftly level PE. Also $4.00 at a PE of 15 is only $60.00 so intel is not undervalued. For that mater AMD would have to earn a buck to support it's price and traditionaly AMD trades at a lower multipal then Intel. It does'nt mater what I think both stocks will trade higher tommorrow, as tech stocks are hot to own right now. I don't agree by i won't fight the tape. Happy trading!