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Subject:  Re: rule maker (no surprise) Date:  9/13/2002  4:11 PM
Author:  TMFOtter Number:  8318 of 8329

Nice work, 1poorguy.

This speaks to something that I have been trying to communicate. Whether or not I think a company is a Rule Maker is irrelevant.

I don't believe for a second that I have some lock on good investment ideas, so again, my decision to put Intel in (or sell it from) the port should not matter.

I LOVE the fact that you went right back and tore apart Intel again. I also like the use of the Ranker, which I agree is a great first cut tool. I've been monkeying around with it in the past few days and there isn't much that I'd change about it as a first cut tool.

Now, as for your thesis, I think you need to make your case on several different levels. First, Intel does have plenty of cash, but what do they DO with it? Intel pays a paltry dividend, they buy back some shares, and they reinvest in new and existing businesses. The first, in Intel's case, is too small to matter, the second is of minimal true benefit to outside shareholders, and the third is the real question.

One of my reasons for selling Intel is that their invested capital is being invested increasingly inefficiently. Any investment thesis in the company really must determine whether an environment where this happens STILL provides enough return from a cash flow perspective to make Intel a promising investment.

Bill Mann

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