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

To: Dale J. who wrote (36783)	9/7/1998 1:44:00 PM
From: Ali Chen	Read Replies (1) \| Respond to of 1571259

Dale, <You have got to look at the total score. Right? Of course I'm right.> Of course you are wrong. Same way as you were wrong on the Forbes Magazine research of Intel's stock option plans and hidden costs. Let ME try to explain it to you since you cannot get it right by yourself: <Say you and I take a test on microprocessor design. I score 195 out of a possible score of 200. You score 85 out of 200.> Let's think you can do 195 out of 200 which seems to me still too high. More likely 160 out of 200. Since my die is 2X smaller, I have 400 candidates in one shot, not 200 as you mistakenly assumed. Now it makes my scores already 170 under your assumption of yields. Now, if more aggressive 0.18 and even 0.13 is economically feasible in the clean rooms, what makes you think that the current 0.25um process cannot be perfected to the same level of 80-85%? Just because Intel is a semi-God and others are handless morons? Is this your assumption, right? Now see, even at current 50% it makes 200 out of 400, and 200 > 160 and even 195 as you wish to believe. With a tiny improvement in a process step or in air filtration or whatever, the 200 can grow to 300 or 350 overnight. In your case, your score cannot be higher than 195 under any circumstances, even Yousef cannot make it so:) <Profit is the ultimate goal and the ultimate benchmark.> <Profit matters, and profit is decidedly in Intel's favor.> You seem to have a short memory about Intel stock options in their labor compensation. Let me remind you that the labor compensation is a significant part of operating expenses that normally affect profits in a negative way :) It means that Intel just is cheating under your "ultimate benchmark". They were caught once in cheating in computer benchmarks, now they continue to do this in financial benchmarks. That simple. Happy investing in the scam. Intel set up this financial trap themselves. With the poor overlook in stock growth, all the granted options will be cashed out as soon as possible, and this process will drain all financial resources at Intel in few quarters. Yes, this is my current "theory" based on limited observations. It may be wrong in fine details, but I am sure it captures the general trend correctly.