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

To: TTOSBT who wrote (51151)	3/24/1998 11:50:00 PM
From: Fred Fahmy	Read Replies (1) \| Respond to of 186894

TTOSBT, First, the earning reported are always net of acquisition charges. In other words, the charges associated with acquisitions are not included in the numbers the analysts care about or what are considered the quarters performance. Second, the charges for such acquisitions are usually write-offs for "research and development in progress". It has nothing to do with using or not using cash. As far as I can remember, the entire deal was paid for in cash. As a "LOYAL, LONG LONG LOYAL SHARE HOLDER" I am generally satisfied with managements management of the company. Sometimes short term (short term being 6 months to 1 year) market and industry dynamics are simply beyond the control of management. You do bring up an interesting point which I'm sure is hindering their ability to pursue further acquisitions....and that's the DOJ. As long as we have a radical, proactive DOJ hell-bent on criminalizing success, future acquisitions by Inetl will be challenged. This shouldn't deter Intel from trying. Again, though, it should be kept in mind that acquisitions are NOT quick fixes and generally take time to produce fruits. I think CHPS will prove to be a solid strategic acquisition although the financial impact will not be immediate. FF

To: TTOSBT who wrote (51151)	3/25/1998 12:56:00 AM
From: Ali Chen	Read Replies (1) \| Respond to of 186894

TTOSBT: <They should be using some of the cash they're HOARDING instead of..> As I got it, all payments to DEC for "borrowed" Alpha technology ($1.3B) will be made out of this hoard. So you should not blame them too much :-)

To: TTOSBT who wrote (51151)	3/25/1998 8:23:00 AM
From: Pullin-GS	Read Replies (1) \| Respond to of 186894

And didn't they just buy Chips & technology? And isn't that one of the reasons for 1qt shortfall (among others) charge from that acquisition. Which brings to mind. Why are they taking a charge then? INTC had to print that...no matter how it was paid for (which was cash BTW). They should be using some of the cash they're HOARDING instead of taking a CHARGE this quarter. It was a cash deal anyway. What did you expect? Intel to slide a big check under the table to the shareholders of Chips&tech without the SEC noticing? That's not a very good business practice.<VBG> ...and it sucks come IRS time when INTC gets no deductions for it.;-)