Smart1

Beware the Semiconductor Rally - Barron's

One more thing I can't resist. The comment about inventory restocking is total BS. No systems company (even phone mfrs) stock microprocessors or memory chips or any other components because of the constant downward pressure on price (as new, better parts become available). Consequently those parts can depreciate very quickly. I would bet my house that major PC manufacturers maintain 2 days max of microprocessor inventory and maybe 3 or 4 days of memory chips. This well known fact makes your restocking comment makes the restocking comment ridiculous and unfortunately reveals how much you know about the industry.

I realize some percentage of those components are sold through distribution but the vast bulk are sold directly to OEM's.

Beware the Semiconductor Rally - Barron's

"But until end demand improves, a lasting recovery is unlikely."

Surely you can come up with something more insightful than that....

By the way of the 41 analysts that cover Intel, 12 rate it a strong buy, 11 rate it a buy, 16 rate it a hold, only 1 rates it an underperform and only 1 rates it a sell. So 39 out of 41 say keep it or buy more, 12 of them say buy a lot more.

How are articles like this allowed to be published, completely devoid of any research or thought? Barron's used to provide insight and valuable knowledge about the financial world. Unfortunately, it has deteriorated to reporting unbalanced rumors and baseless conclusions. This kind of irresponsibility is why I am no longer a subscriber.

Q1 Earnings: Potential Winners and Losers

I think the Intel 3 cent estimate is very conservative. Their Q4 2008 number was low because of a write down of almost $1B. Without that, I think they would have been over 20 cents. I understand that Q1 revenues will be lower but, assuming there is not another big write down, I don't see the earnings falling that much. I kind of roughed in the numbers and came up with 12 to 15 cents. Granted there are several high impact variables but I tried to take a conservative position on most of them and still came up with 12 to 15 cents.