Paul Brown

Long/short equity
Paul Brown
Long/short equity
Contributor since: 2013
Martzee,
I do think the price of gold can easily reach $2,500. The main reason I say this is there is a global push to remove the US dollar as a reserve currency. The Fed is not helping the dollar in the long run with QE. A good signal to watch for next is discussion on increasing QE. It is apparent a majority of Americans do not want to endure the pain it takes to lower spending and are willing to push it off to their grandchildren. The economy is not helping the dollar. The current labor participation force is not healthy for the economy and the dollar. That being said the dollar is being destroyed which will lift the price of gold.
There will probably be no clear idea on who or what entity is dumping tons of gold like that on the market. There is no mention of the SEC looking into these events over the past year. There are theories which state the bullion banks are able to make a large sale like this on behalf of a government in order to keep a country's currency or treasury bond at a desired price. In the US the group is called the Plunge Protection Team. See Executive Order 12631: Quote, "The Working Group shall consult, as appropriate, with representatives of the various exchanges, clearinghouses, self-regulatory bodies, and with major market participant to determine private sector solutions wherever possible."
Paul,
Thank you for the advice, it is taken earnestly. Drilling down the balance sheet the Total Current Liabilities appear to have shrunk over the last three quarters. 4th Quarter 2012 was 12,898 and 1st Quarter 2013 was 11,798 and this 2nd Quarter 2013 is 11,389. The revised filing did make note Gross Margin Reconciliation: Q2'13 Outlook to Q2'13 (58% +/- couple points to 58.3%, up 0.3 point) [note: point attributions are approximate] - 1.0 point: Higher platform* inventory write-offs (primarily pre-qualification product costs) + 0.5 point: Lower platform* unit costs + 0.5 point: Miscellaneous. Where the asterisk (*) was PC Client Group and Data Center Group microprocessors and chipsets.
There was a question answered last quarter by Stacy Smith, Intel’s CFO about CapEx. "How much of the capex can be moderated lower, if the PC industry continues to be weaker than probably what you thought going into the year? I think we’re really well-positioned right now from a factory and utilization standpoint. And let me just realign what we did in the first quarter. We saw that units were a little bit weaker than we expected and our expectations came down a bit. That allowed us to bring utilization down on some older generation process technology.
You can see we brought our inventory levels down pretty significantly, and actually a little bit more than I thought when I started the quarter. And we took $1 billion out of capex by rolling forward some older generation technologies to offset things that we needed to buy for 14 nanometer and new process technologies.
In terms of your question of the levers that we have, I think that’s a good example of how we can be responsive in a very tactical time horizon to changes in demand. And as I look forward across the year, the prediction right now is we’re going to run at a healthy rate of utilization. In fact, we’re starting the quarter (start of 2nd Qtr.) at that utilization rate. I think inventories will continue to be healthy.
If demand turns out to be stronger, we have some white space that we can grow into, so we can respond up. If demand ends up being a little weaker than we thought, you saw the playbook in Q1. We can pretty quickly react and bring capex down if that’s the case."
They appear to be keeping inventory low. If you see anything I missed I would appreciate your input. Thanks again.
....96 shares for each one.
Robert, thank you for the correction. The long-term chart gives that impression it was a penny stock. Adjusted for splits, if you bought in 1970's you would have appx shares for each one you bought.