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

To: Paul Fiondella who wrote (57262)	6/5/1998 11:01:00 AM
From: Reginald Middleton	Read Replies (1) \| Respond to of 186894

<Most of the Internet stocks have not been making money So why do they get bought? Because market share is more important than making money initially. AMD has been fighting a battle against the Intel monopoly to carve out a segment of the market for itself. If it comes up with a successful strategy to do that then it will make money. In fact the day AMD is perceived to have done this is the day that their stock takes off.> The Interent stocks have VERY low fixed costs which allow them the luxury of foregoing positive cash flow for a while. Things are a little different with capital intensive companies such as semi's which must continuously invest so muc money uprfront in things such as fab's etc. The intial return on investment from a cash perspective is much higher in Yahoo than it is in AMD, therefore Yahoo can fund further growth through the generation of cash (albeit not much of it). The fact that they reinvested it means that it won't show up as profit. This actually increases cash flow for it shields those would be profits from the tax man. AMD on the other hand does not have that luxury due to the very high fixed cost hurdles they must first overcome. Once they are overcome, the rest is gravy (just ask INTC), but until then, fabs cost an awful lot more to build than websites.

To: Paul Fiondella who wrote (57262)	6/5/1998 11:08:00 AM
From: gnuman	Read Replies (1) \| Respond to of 186894

Paul F. As you are aware, this thread is followed by a lot more people then just Intellabees. You have made some intelligent contributions in the past, and this was recognized in the Money article. But your constant invectives against Paul E. aren't doing much for your stature or image. Most people on this thread have become tired and PO'd at these boring posts. Is this the type of garbage you want analysts to read? Better if you just make some intelligent inputs on Intel and its' business. If you work at it you can raise your stature. Keep up the vendetta and you'll just drag yourself further into the mud. You're a smart guy, think about it. Hope you'll recognize this as "constructive criticism" Gene