Replies to post #160882 on Zeev's Turnips Patch-No Politics (ZEEV)

[mainehiker]

punkle good points on overall bulishness re a stock or the market..and the fact that there is no AH talk on gern and there were doubters today (even doubters playing it!) indicate to me the move on it is real

[Zeev Hed]

The increase in profit margins does not come from "squeezing" suppliers but from better utilization of existing capex (plants). Whether or not they make a chip they have to charge about $1.2 B per quarter to depreciation, that does not increase when the plant is working three shifts and that is more than 1/3 of the cost of sales (actually 36%). Your comparision table is also against updated forecasts by INTC, you should do the YOY or even the QOQ comparisons. The third quarters is not the most robust either. I thinkk that as time passes, INTC is going to narrow the forecast toward the top of the range, and that will provide additional impetus for the stock to climb further.