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Rap Sheet

Author:

Jam ok

Subject:

Earnings

Date:

11/01/17 at 12:30 PM CDT

 

 

READ: 5

RPLY: 0

0

0

RECS:0

Sentiment:

Neutral

EA OT - INTC

EA taking a -5% beating on lower forcast for holiday season.  But then, it's run up so far in the past year. INTC continues to rise 1%+ day after day. At first, it was a very good CC, more lately, it's the persistent widespread rumor that Apple may drop Qualcomm in favor of INTC in some of its important products. I don't know the internals or details - could be that nobody does, given that it still has rumor status, AFAIK. But I think it points up an strength in INTC: their flexibility. Owning their own foundaries, maintaining 'die shrink' time leads (altho there have been hiccups and delays on this in the past - there's no telling what problems may crop up in 'perfecting' the shrink - and I would think that becomes more prominent as each shrinks mean everything must become more dense, leading to greater problems with leakage, etc. - Just my non-engineering speculation), coming up with unique products, my guess is that they can 'tailor' an offer to a customer like Apple, making it an offer it can't refuse, capex-wise. One would think that such gymnastics to win business would lead to AMD-like trouble in terms of thin margins (AMD is crashing, despite being in all the consoles that will be sold this Christmas - who can resist an Xbox One X, with the capacity to play games in 4k? (I can, as the Xbox One S has a 4k disk player, 4k streaming capabilities, backwards compatibility with lots of Xbox 360 and some orig. xbox games, all for $200 on sale, and Black Friday may see lower prices - a value proposition.) But somehow, INTC managed to turn a handsome profit last quarter. But I thought at about $40 it looked pricey. We're quite beyond that now. Makes me wonder how much up and down movements with stocks currently has to do with earnings jitters - outsized rewards for the winners, outsized punishment for the losers?

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