I am just reposting this to put GS's comments into perspective.
Apply the same scenario to two companies...and what do you get?
NO money in tinkering with an TSMC ADR...that's the only difference
Apple orders seen squeezing TSMC’s gross margins
October 25, 2012, 11:02 PM
Barclays Capital upgraded Taiwan Semiconductor Manufacturing Co. TSM +1.20% TW:2330 +2.95% to overweight from equal weight Friday, saying that short-term cyclical concerns were already priced in and that it will maintain its global leadership in metal castings on expected orders from Apple in the first quarter of 2014.
metal castings = that happens when a Komputa translates
But the brokerage said a lower gross margin of 35%-40% on Apple’s AAPL -2.81% orders would drag on TSMC’s estimated gross margins of 40%-45% for 2014-2015.
James Covello forecasts that if Apple move to Intel, that Intel should drop because of the narrower margins. By extension of his logic, Samsung should pop based on loss of Apple business and expanded margins. TSMC should also move up nicely since their margins will not be threatened anymore.
Not bad...margins might be far better than "expected"
IMHO too much Barron's, Forbs, seeking alfa, fool,wallsheet garbage floating around.
Oct 22, 2012 – While we believe Intel will remain vigilant in the ramp of 14nm, as Intel ... to 14nm (80-90% of equipment bought at 22nm is reusable at 14nm node), we ... Barclay's Muse said:
do you know what Intel's depreciation schedule is for equipment?
is it linear or can they use progressive
Covello can't downgrade further so he manipulates anyway he can. His clients down need to see the logic in the statement, because they just follow the short and make money. I am guessing INTEL has no banking relationship with GS. Who handled the sale of new debt? The should be pounding the table on INTC. Todays huge swings are too similar to the recent runs and then drops. INTC needs at least one major analyst to press positive for the stock.