Intel Corp (INTC)

[Nitt]

re:"Has anyone come up with a good explanation of how they are going to cut costs dramatically?"

Here are a few ideas:

-Write down a bunch of capital so they don't get hit with as much depreciation every month.

-Get more people classified under R&D. You look at what they do, and if it smells like R&D then it is. This could include lots of heads that may have been included in cost of sales before. Applications engineers and TME's (Technical Marketing Engineers) along with their support staff are good example.

-Close and or sell existing FABs and then go to a foundry. They could actually sell a fab and then agree to buy capacity.

-Cut heads.

-Across the board pay cut with some kind of performance metric that creates a bonus system would reward all on company performance.

-Stop paying Jerry and Hector so much and shut down the Socal executive wing and dump the limo.

-Spin off the flash business... they were puffing it so much on the conference call, it makes you wonder.

I'm sure there will be some combination of the above.

Nitt