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Intel Corporation Message Board

  • alta_is_for_skiers alta_is_for_skiers Jan 3, 2002 9:22 AM Flag

    Does this make any sense???

    8:18AM Intel (INTC) 33.00: -- Update -- Traders citing Bloomberg say that shortages of INTC's P4 may end by Feb as INTC boosts supplies to meet better-than-expected demand, according to the China Times web site; however, secondary mkt prices of some P4 chips have declined by about 10% in recent weeks, perhaps partly due to the practice of some Asian PC makers who resell INTC's chips without the co's permission when supplies are tight.

    Why would prices drop if supplies were tight??? Even if someone else was reselling them, they gotta be selling them pretty much at cost. recent price increases haven't been that much. Anyway, it sounds pretty much like damage control to me.

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    • -------------
      8:18AM Intel (INTC) 33.00: -- Update -- Traders citing Bloomberg say that shortages of INTC's P4 may end by Feb as INTC boosts supplies to meet better-than-expected demand, according to the China Times web site; however, secondary mkt prices of some P4 chips have declined by about 10% in recent weeks, perhaps partly due to the practice of some Asian PC makers who resell INTC's chips without the co's permission when supplies are tight.

      Why would prices drop if supplies were tight??? Even if someone else was reselling them, they gotta be selling them pretty much at cost. recent price increases haven't been that much. Anyway, it sounds pretty much like damage control to me.
      -------------

      The article indicates that the supply shortage will go away in a little more than a month. The value of their inventory will decrease at that time, so they need to get rid of the inventory now.

      So yes - it makes sense.

      You are in trouble with your short position and your posts will not help.

 
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