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

To: MONACO who wrote (69915)	12/17/1998 10:58:00 AM
From: nihil	Respond to of 186894

re: money ends up on bottom line, not! As I remember the deal, Intel will not have the shares issued. Investments are carried on the balance sheet at cost (around $500 million) and until sold, cannot contribute to nonoperating earnings. The liquidation value of Intel has increased by about $350 million because this investment was made, but it should no value to foreseeable future earnings. IMO Intel will not sell this investment and realize any gain in the next few years. Nevertheless, knowledge of the growing value of investments in nonconsolidated firms should give investors confidence enough to bid up the P/E. Sincne nearly all of these investments pay no dividends, their earnings never show up in Intel's accounts until sold. Intel is turning into one of the largest tech mutual funds in the world. The Micron Technology holding alone amounts to about $.45/share of the value of INTC. Some of the investments could be sold if it were necessary to add a few cents to earnings some distressed quarter. Of course, that would nearly always be a terrible time to sell.