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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Bill Jackson who wrote (36167)	8/18/1998 1:13:00 AM
From: d[-_-]b	Read Replies (1) \| Respond to of 1570363

Bill, the problem is Intel has enough capacity - what would buying more fabs do for shareholders? For that matter they have enough employees and still have excess cash. It's not a simple choice to make when you have billions in profits quarterly. However, given the annual average return of Intel stock over the past 25 years - I'd say buying their own stock has been a pretty damned good strategy. That's not to say the past is an indication of the future - but common wisdom says it's not a negative either. A large part of excess cash has also been used to invest in other businesses besides Intel's own stock - which has also been a very successful strategy. I doubt you could classify Intel repurchases as lop-sided or to risky. That diversification phrase comes to mind, and I believe Intel has spread the cash around nicely including a token dividend in addition to the share repurchase program. As a shareholder they've done well for me, so I'm not for suggesting they change strategy because some writer of copy says it's not as profitable as we (collectively) are lead to believe. Most companies these so called writers examine have loads of debt and are not deep in the money, they just let the accountants play with the numbers. You know T-bills and mutual funds look like trash to me, but other folks swear by them. Most investors hate volatility, that's one reason Microsoft defers earnings and one of the reasons Intel repurchases stock. Any well run company tries to manage growth or lack of growth, since the beginning of the year it's been a bit of a flat growth picture, Intel seems to be managing this with repurchases to avoid excess volatility. I believe the stock is up over 20% since Jan, so I'd have to say that's a pretty good return. PS: I don't really take sides on this AMD vs Intel thing others are so fond of - I'm just trying to make money quickly and safely, kind of an oxymoron, but so far so good (300% on Intel, 1200% on Microsoft ditto for Cisco). Happy returns!