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Bill,

Glad you liked it. Right now, what they mostly seem to be doing with the cash is surviving. AMD, their main competitor, is dying because they basically have no cash. Intel spent something like $7B last year on capital (new fabs, mostly).

What concerned me (and still does) is this: http://www.quicken.com/investments/seceval/?cmetric=intrinsic&cursym=&csym=&csym1=&csym2=&initearnec=&egrrbtn=&egrdd=&egrec=&dcrrbtn=&dcrec=&dcrdd=&p=intc

Future growth may not be able to sustain the current price. That was the basis for this valuation post of INTC I made a while back: http://fireboards.fool.com/Message.asp?mid=17801770.

Another factor, however, is that the semiconductor industry cycle is nearing bottom (who knows if it is there yet). One must recognize this is a cyclic industry. And one must also allow at least some premium for INTC given that Intel is the major player in CPU's, and no slouch in flash and communications chips.

For the record, I sold most of my INTC in the 30's based on valuation concerns. I just wish I had known more about valuation when it was in the 70's! :-(

1poorguy (still a small long position)
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