Intel Looks a Gift Horse in the Mouth

Intel's (INTC) director of investor relations begged an audience with The Business Press Maven, who, kind and merciful soul, granted it.

In all seriousness, as almost all readers who have written know, when you write to disagree with my assessment of the media coverage of a stock, I will give your thoughts and perceptions serious consideration and write back, whether you are a high-placed corporate official, Wall Street hack or owner of 37 shares of an $8 stock.

Our economic system is, at its best, a marketplace of ideas and perceptions, and I respect that entirely. I also know that I am not always right. Just almost always.

The Wrong Story ... Again

Here's the deal with Intel: When the company recently reported earnings, the focus of many of the headlines and ensuing articles was on the profit jump. "Hogwash," sniped The Business Press Maven. The company is engaged in a pitched battle with Advanced Micro Devices (AMD), its main chip competitor, on price.

Business media focus should be on gross margins, which in this case, fell like a stone strapped to a rock. OK, maybe not that bad. But they came in at 46.9% when 48% was expected. Moreover, the company said that pricing pressure was worse than it expected, but it held out solid hope for a recovery of margins to the flush level of -- get this -- 52% in the third quarter.