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.

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

To: Marco Polo who wrote (60414)	6/3/1999 6:58:00 PM
From: Kevin K. Spurway	Respond to of 1572196

They've got too much cash. Rather than give it back to the shareholders with a dividend or a buyback (the efficient thing to do from a pure theoretical economics perspective) they figure they'll invest it in things like media and entertainment. There was an article in the Journal about this a couple weeks ago. Kevin

To: Marco Polo who wrote (60414)	6/3/1999 7:02:00 PM
From: Tony Viola	Read Replies (2) \| Respond to of 1572196

Benjamin, Why don't you tell someone there at Intel that all the diversification they are doing can only hurt their core business? If Intel got out of stupid things like networking, I'd put my life savings in Intel and shut up. Diversification can only mean distraction. I don't want to see Intel become an ugly conglomerate. Tell them to just make chips, research and improve chips, and use any cash overflows to buy back stock. Maybe things like the K7 wouldn't happen (Intel showing up late to the game) if they would concentrate on their one good thing. Your advice to IBM in the 80s would have been to stick with just mainframes? AT&T ought to stick to just phones. Microsoft to OSs and office suites only. HP to test equipment. TI to DRAMs. Maybe Xerox should have diversified back in the 70s? Tony

To: Marco Polo who wrote (60414)	6/3/1999 7:11:00 PM
From: Cirruslvr	Respond to of 1572196

Ben - RE: "If Intel got out of stupid things like networking, I'd put my life savings in Intel and shut up. Diversification can only mean distraction." Actually, diversification, or a "reinventing" of Intel, is what will allow Intel to grow in the future. They are doing this w/their all these acquitions we read about.

To: Marco Polo who wrote (60414)	6/3/1999 8:41:00 PM
From: Process Boy	Read Replies (1) \| Respond to of 1572196

BDL - <Why don't you tell someone there at Intel that all the diversification they are doing can only hurt their core business?> I certainly don't have a problem with diversification, if done properly. The example you cite, Networking, has a shot at being quite lucrative actually, to the tune of XX Billions / Yr. Although still nascent, NCG has grown double digits at year in terms of revenue, and is targeted for 30% year over year growth. My research shows this is very attainable. As far as myself "telling" Intel anything, I certainly could, but being that I'm a "Boy", they would probably indicate a thank you for the suggestion, and suggest I get back to work without delay. :-)). PB