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alstry (36.24)

Intel Confirms Depression After Dell Confirms Depression After CSX Confirms Depression

Recs

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July 15, 2009 – Comments (6)

Remember, a Depression is Defined as a 10% drop in GDP peak to trough.

INTC just reported with revenues DOWN around 20% and an outlook for a double digit decline for next quarter.....Dell also reported revenues DOWN a greater percentage

For both of these companies, sales for America was worse than Asia......consequently it would be reasonable to extrapolate a GREATER percentage sales decline for the U.S. than company as a whole.

Many other tech companies who have recently reported also revealed similar and greater percentage sales declines.

Based on INTC and DELL's #s, it is clear that tech in now in a Depression. 

CSX is a major rail company.  It too reported similar sales declines.  Trucking companies will likely also report large sales declines.  Trucking and Rail move over 90% of the goods moved in America.

It is clear that transportation is in a Depression and is a good barometer for commerce in general.

Add in the above to New Home Sales declines of 80% and Auto Sales Declines of approaching 50%... we have two other MAJOR industries are confirming Depression.

The insane part is "economists" are saying the RECESSION is ending????  Where are they getting their data when more and more stories like the following are coming out everyday:

Star Tribune

July 14, 2009

In another sign that the housing market has yet to hit bottom, window manufacturer Andersen Corp. said Tuesday it will permanently eliminate 250 management and staff positions, more than half of them at its Bayport, Minn., headquarters.

In addition to the job cuts announced Tuesday, Andersen eliminated 287 jobs last week as part of the closing of a vinyl window manufacturing plant in Fall River, Mass., said Maureen McDonough, a spokeswoman.

Tuesday's workforce reduction represents about 10 percent of the company's management and office staff. Those cuts come at a time when 600 production workers who were laid off earlier this year have been recalled as orders have improved slightly.

The management and staff cuts are being made because the company believes its markets won't recover until late 2010 or early 2011, making it necessary to eliminate jobs that aren't directly related to the current volume of window production, McDonough said.

"While we had every hope and intention of riding out this market correction without making adjustments like this, it has become clear that these actions are necessary to protect the company's financial strength and flexibility given the fading prospects for a near-term housing market recovery," Jay Lund, president of the Andersen Window and Door Group, said in a statement.

6 Comments – Post Your Own

#1) On July 15, 2009 at 8:20 AM, alstry (36.24) wrote:

Gannett Co. is a major media player which also reported this morning.......it too reported a revenue decline of approaching 20%

Other media companies have indicated similar or greater revenue declines......

It appears we can add media and advertising to the list above confirming DEPRESSION......while "economists" are calling for an end to the Recession.

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#2) On July 15, 2009 at 9:14 AM, alstry (36.24) wrote:

AMR reported a revenue decline of over 20% as well....

Looks like we can add airlines to the list of industries confirming DEPRESSION!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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#3) On July 15, 2009 at 9:22 AM, russiangambit (29.37) wrote:

Yes, but it is "better than expected" depression, by just about 2-3%.

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#4) On July 15, 2009 at 9:33 AM, alstry (36.24) wrote:

NEW YORK (MarketWatch) -- Russia's gross domestic product contracted by an estimated 10.1% in the first half of 2009 compared to the year-ago period

 

Looks like the FU virus has spread around the world.

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#5) On July 15, 2009 at 9:57 AM, toopersent (82.01) wrote:

I regards to housing, inventories are very high which is bad news for builders, which is bad news for Anderson.  That doesn't mean that the housing market is doomed to go lower, it just means there is less of a reason to build new houses when there are vacant houses to be bought.  On the other hand, it doesn't prove that the housing market hasn't hit a bottom either.  I just don't think that article you referenced is a big enough indicator to prove that housing hasn't bottomed.

Also, as far as INTC, their CEO stated that management feels they have already hit the bottom in the chip market.  They also crushed analyst expectations so the market has moved up.  However, I think INTC is in trouble for the long run.  Computers are just getting cheaper and they might have a tough time adjusting.

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#6) On July 15, 2009 at 10:03 AM, alstry (36.24) wrote:

I believe a significant amount of window sales are replacements.  No single article is  sufficient to establish a trend, but just a piece of evidence providing substantive insight.

 INTC revenues were terrible on a y/y basis.  The trend is toward cheap net books and the ATOM processor......and that trend is accellerating.

Whatever the CEO says......the facts are the facts.

As far as expectations........

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