Intel

Yesterday Intel {INTC}-the world’s largest chip company announced that it will cut over 10,000 of its 100,000 employees, drop cap. ex. spending by $1 billion over the next year and will save nearly $3 billion by the end of 2007. The company seems to have finally recognized that the PC & server chip business won't be the growth drivers they once were and that competition with AMD is not going to go away.

Intel last restructured the company in 1988. Above is a chart of how the stock did after they announced the restructuring. {You can double-click on it to make it larger.}

*Long INTC in various client accounts. Long INTC in personal accounts via options.