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

To: sandeep who wrote (16859)	9/20/2023 8:08:56 PM
From: Kirk ©	Read Replies (1) \| Respond to of 26764

Are you aware that capital is USUALLY expensed over its lifetime while free cash flow is in real time? Reading a balance sheet isn't something easily taught in a short internet reply... so "it is complicated" is a valid answer. I designed a new product that could use an old, dying bipolar silicon process in our San Jose Fab back in the early 1990s. It was basically free money but for the labor and materials since the equipment was "paid for." The best part of it was it kept 200 jobs in San Jose for an extra two years before we redesigned the chip on a cheaper process (bigger wafers, no CA sales tax to buy the new capital equipment, etc.) in another country. I imagine making some iteration on an ICE auto made in a union factory is "free money" but for some minor new tooling and the labor. But now that those ICE autos can't be sold in CA soon.... they have to retool. All of a sudden there isn't all this "profit" from turning out old stuff. Make sense?