Replies to post #12473 on Intel Corp (INTC)

[andyk]

I started holding INTC since 1997. For the first time I am seriously considering getting out. The only thing positive from the report is "The company expects faster growth in products such as flash memories, chipsets and motherboards that have lower margins." Yeah, more revenue, but LOWER MARGIN products.

Even the chipset recall, which I didn't think would even cost $8M, turned out to cost $38M. Why?

This is extremely worrisome. Please don't take this personally people. But I have been extremely bothered by the kind of investors that INTC has recently attracted. For example, following a post "IA-64 was not meant just for server/workstation", someone would then rebut with "Itanium was meant for server/workstation". And the use of empty words like "officially". They just all sound like playing with words.

I was at first concerned about something like "NetBurst" marketing b.s. The fact that a marketing type is going to soon become CEO for the first time in Intel history is probably going to the last straw for me.

What happened to "Be open and direct"?

http://www.intel.com/jobs/workplace/values.htm?iid=jobshomenav+values&

I hope Grove comes back and clean house. I think Barrett made a serious mistake choosing the marketing type over Albert Yu.

[wbmw]

UPC, Re: I sold all my Intel A/H. GMs lowered 2 points for 2004. That was the warning signal advocated by some here. Thanks for the advice.

Looking at the stock in after-hours, it seems a lot of others felt the same way. The drop in GMs is a red flag for right now, so it's probably best to be on the sidelines in terms of an investment. Do yourself a favor, though, and track GMs going forward. Intel may be down, but it's still a strong company going forward. The trick is to find the bottom and get back in when it's cheap.

One positive piece from the earnings conference was that flash and communications seems to be on the uprise. In spite of the seasonally down quarter, the communications group gained $206M in revenue (with flash responsible for $170M of this), all while cutting losses nearly in half. I think Intel is staged to become profitable in the communication division within the next few quarters, and that will influence the stock price as well.

Best of luck out there.