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Subject:  RMEssentials Intel Date:  3/3/2000  6:15 PM
Author:  rdfrazier Number:  5696 of 8329

I have made my first attempt to fill out an RM Essentials spreadsheet. The company I chose was Intel. Since this is my first time I was wondering if any of you could check my work. I plan on researching a number of companies and want make sure I know how to crunch the numbers.

Here is how rated Intel on the first 5 criteria:

1. Dominant Brand - Yes
2. Repeat Purchases - I said No due to the infrequent nature of return purchases.
3. Convenience - I said Yes due to the fact it is hard to by a PC without the Intel Inside logo slapped on it.
4. Expanding Possibilities - I said Yes because of everyone's familiarity with Intel and the continued potential for worldwide sales.
5. My Familiarity & Interest - I said Yes, of course.

For the 5 quantitative criteria, I used the 3Q 1999 10-Q that I linked to from The Fool. The income statement numbers were for 9 months ending Sep '99:

Sales: 21,177
Prior year sales: 18,659
Cost of goods sold: 8,660
Net income: 5,206

Cash & Equiv: 13,544
Current Assets: 17,916
Current Liabilities: 6,389
ST Debt: 164
LT Debt: 884

These gave me the following results:

Sales Growth: 13.5%
Gross Margins: 59.1%
Net Margins: 24.6%
Cash-to-Debt Ratio: 12.9
Foolish Flow Ratio: 0.70

The final result was 14 out a possible 15 points. Not bad. Do my numbers look correct? Is there a way to get more recent financial data, or should I always stick to the SEC filings? Any comments and suggestions will be appreciated. Thanks in advance.


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