>Intel Fails to Meet Its Targets The stock market humors me. Intel missed its quarterly target. A target that was only an "estimate" in the first place. And suddenly stock analysts start freaking out and talking of doom.
But lets look at this... they missed their target by 200 million dollars... out of 10.2 BILLION dollars. So they estimated they would have 10.4 billion, but were off by .2 billion Ok, so that is 200 Million down from what they expected, nothing to shake a stick at... but wait, before we scream of doom, that is UP from last year where they had 9.6 billion of revenue. So their 200 Million short was still 600 Million MORE than they had this time last year. So the company made MORE money then last year, but because they weren't up to what they *hoped* they would make, the stock market freaks out and thinks Intel is doomed. But wait, maybe the doom is from their actual quarterly profits... they made 2.45 billion dollars profit... NET profit, that means in the clear in their pocket, pure profit. In one quarter (3 months time). This translated to 40 cents per share. But wall street is freaking out, because they predicted higher. Mind you Intel didn't predict higher, WALL STREET predicted higher. That right, a bunch of guys that only know how to trade stock, made the assumption that a computer chip maker would make more money then they really did. And when their assumption was wrong, they freaked out. So how far wrong was this assumption... 3 cents per share. Wall Street (the guys that only know about stock trading) assumed a chip maker was going to make 43 cents per share in profit, and then freaked out when Intel only made 40 cents per share. But wait, lets look a little closer at this... if you want to scream doom, maybe there is something to that shorting of 3 cents per share. Intel made 2.45 Billion in net profit for the quarter... and last year, same quarter they made, 2.12 billion, or 33 cents per share. Wait, what was that... that's right, Intel made MORE MONEY this year then last year. They made roughly 330 Million dollars more this quarter than last year. They increased by 7 cents per share. But since Wall Street (remember the guys that don't know chip making, just stock trading) assumed they would make 10 cents more per share in profit... and they didn't, now Wall Street is freaking out that Intel might be dying. I have never grasped how making a solid profit HIGHER than last year translates into a sign of doom for a company. But then, I've never understood Wall Street analysts and their amazing ability to throw everything way out of perspective. These guys crack me up (and yes, I'm laughing all the way to the bank, because I bought Apple stock back when they were all saying Apple was about to go out of business, that was two stock splits and 70 points lower in the market ago... HA HA HA HA HA HA!) -chris <http://www.mythtech.net> ___________________________________________________________________________ To unsubscribe send a mail message with a SUBJECT line of "unsubscribe" to <[EMAIL PROTECTED]> or <[EMAIL PROTECTED]>
