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No. of Recommendations: 15
Letter to the Analysts:

Have another hit off your crack pipes. It's a tragedy that people still listen to you
charlatans. Do earnings mean anything to you? Does market cap mean anything to you?

When a company like Intel has it's earnings drop 80% and it is still priced not for
perfection as some like to say, but rather for stupidity, what do you do? You
stick to your guns in order to save face and declare it a strong buy! It is typical of human
nature to mitigate as you do in order to save face; however, it is disgraceful when your
saving face is at the expense of millions of people. With INTC currently near its 52 week
high and a market cap of about $240 BILLION DOLLARS, Intel will need to reach a
market cap of about $1 Trillion dollars in order to live up to the premium by which it
now trades.

If Intel's near term future was so rosy, they would be increasing capital spending
- not decreasing it. They should also be pumping up R&D spending because they are
going to need to open new industries if they are going to reach the new highs from here
which you predict. The actions of Intel don't seem to match the zeal priced into the
stock, afterall, as I have been challenged over the past several months for propounding
the notion that the nature and history of technology is attrition in profits and margins
despite the improvement of technology, the contention was that Intel would spend
money fervently in order to create new markets. That was the justification I was given
for such an extraordinary premium for diminutive earnings.

It will be absolutely necessary for Intel to re-invent itself to warrant this price because
during their glory years, most people didn't yet own computers so naturally sales would
be quite strong. It was the same way with automobiles, radios, televisions, VCR's etc.
The Calculator business was once a highly profitable growth industry. Now that so many
people already own computers, there needs to be a pretty damn compelling quantum leap
in technology for most people to keep that extraordinary growth rate of the 1990's going.
There is no such incentive at this time. Unfortunately, Intel is priced at the 50% EPS
growth rate at this time while growth rates have actually been receding by the
double digits! The price doesn't make sense.

I'm not saying that Intel is a bad company. There is nothing wrong with Intel. There
is something wrong with Intel's price. I might add that it is through no
fault of their own, unless Arthur Andersen is doing their accounting that is. The current
egregious error in Intel's price in my opinion is directly attributable to the charlatanry of
the Wall Street analysts coupled with the excessive credulity of the investors and fund
managers. I believe we have a castle in the air my friends. Remember $240
BILLION Dollars is allot of money, even in this day and age
. In order to be willing
to pay $240 bills for this company, one has to believe that Intel is heading to at least a
half of a trillion dollars in market cap while jobs continue to be obliterated. Last week
alone Ford announced 30,000 jobs cuts, Merril Lynch announced about 20,000 new
firings and yesterday I saw that one of the telecom companies announced 4,000 firings.
As I predicted in December, the new wave of cuts are coming after the major new cuts in
automotive firings. We are in recession. Unemployment is going to the double digits and
there is no compelling technology out there to start a massive wave of upgrades in tech
spending.

So, all of you pseudo-analysts out there, sit back and have another hit of the old “peace
pipe”.
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