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

To: TGPTNDR who wrote (69726)	12/10/1998 9:28:00 PM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Pretender - Re: but I think the tide is running against them, and with the continuing competition, perhaps against all the CPU manufacturers, at least for a while. " Short Intel again, wise guy. You've done it twice and you lost both times. Intel is making money. They are sold out. They have increasing margins. If you can't put 2 and 2 together, SHORT INTEL AGAIN ! The only thing you have proven is that you know how to lose money. Prove it again, Pretender. Paul

To: TGPTNDR who wrote (69726)	12/10/1998 11:00:00 PM
From: nihil	Read Replies (1) \| Respond to of 186894

RE: Inventory cost not higher than production cost Give it up, and study some elementary accounting. You can't puff up your inventory values above production cost, or you go to jail. Its called tax fraud -- since -- when you eventually sell them (or write them off), you deduct a higher CGS from your revenue and pay lower taxes than you ought having previously paid higher taxes than you owed. There is a whole symphony to be played on interperiod shifting of earnings. Microsoft specializes in shifting earnings into the future by delaying revenue recognition and has no doubt had many tedious discussions with their own and IRS auditors on the practice. CPQ specializes in shipping next month's orders this month (channel stuffing). Intel in the past has compensated customers for post shipment price cuts (their inventory obsolescence -- thus punishing their own channel stuffing and discouraging Intel guys from trying it by their accountability system), but is now trying to coordinate production and orders for mid-size and large customers. What Intel actually needs is a 6 day turnaround (hardly time enough for paint to dry) on chip production, rather than six weeks. As it is, there are bound to be over and under production regardless of how hard Intel tries to match production to orders. This is the inevitable and unavoidable result of BTF production.

To: TGPTNDR who wrote (69726)	12/10/1998 11:43:00 PM
From: exhon2004	Read Replies (1) \| Respond to of 186894

TNSGPTNDR: re <<If the cost of inventory production is less than the inventoried book value, you can indeed make EARNINGS(or at least post a quarter or two of them by stockpiling product! Check your Accounting 101 book. The process can't go on very long, and ultimately leads to one time charges or write-offs, but it can be done for a while! My contention is that the Inventory Value at which INTC is booking the high speed PIIs is greater than their actual cost of production, and greater than the ultimate selling price of those chips plus normal mark-up.>> Sorry TG, but if you actually took accounting 101 your instructor is going to retroactively flunk you when I e-mail this post to him/her. Inventory is carried at the lower of cost or market. At least by companies practicing gaap accounting.