Friday, June 09, 2006

Intel shares fall again to three-year lows

Well a month ago Intel's shares had a three-year low record. Now that record is beaten.

Intel fell for the third staight day to touch a low of $17.33, a price not seen on Intel shares since April 2003. The drop comes as the company is in talks with private investors and other chip firms to sell Intel's communication-chip assets.

Why? Intel is just in front on unbeatable"new" architecture launch. Shouldn't be reversed?

"We don't own Intel," said Richard Hunter, director of research for Lighthouse Capital Management, a Houston investment firm that manages $400 million. "Intel is a really big company and it's hard to get good growth, especially when they're chained at the hip to personal computers," Hunter said.

"Where is Intel going to find growth?" asked Romeo Dator, co-manager of the U.S. Global Investors All-American Fund, which has $22 million in assets.

Hmmm. Lets think about it.
Ha! I got it !
Intel is going to find growth in Israel, where Intel started construction of world's biggest fab, that is worth some $4 Billion.
But, there is only 6 million inhabitants there and thus some 30 high end processors each year per each of them?. Well, if that small market couldn't significantly boost Intel's future growth, world wide alliance should be made to push Intel's sell and simulatenously to forbide AMD's by all means, including illegal ones. Why that? Because, all those that don't agree with previous proposal are obvious anti-semites and consequently part of terrorist supporting network. I admit, brilliant logical construction, but are the patent rights payed to US Republicans?, they previously used the logical construction above for Iraqi adventures.

What is the moral? At this moment seems that Intel runs out of customers, more likely than it runs out of production capacities. But who doesn't know US history, deserves to repeat past mistakes.
Let's look at oil through a historic analogy. Around 1850, the biggest or second-biggest industry in America was whaling. Most buildings were lit with whale oil. But in the nine years before Edwin Drake struck oil in 1859 in Pennsylvania and made kerosene ubiquitous, at least five-sixths of the whale oil–lighting market had already been lost to competing products made from coal. This was elicited by the relatively high price of whale oil as the whales got shy and scarce.
The whalers were astounded that they ran out of customers before they ran out of whales. They didn't see this coming because they hadn't added up the competitors. Oil fields can be like this today. And alas, processor business, why not?

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