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Technology Stocks : Intel Corporation (INTC)
INTC 50.57+4.8%Feb 6 3:59 PM EST

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To: Boplicity who wrote (9655)1/30/1997 6:07:00 PM
From: Nathan Brown   of 186894
 
I agree with you that Intel is not overpriced. With the recent lack of decrease in Intel's higher end products I believe that profits for the next quarter will be increased. Usually Intel cuts their prices on chips 20-30% a quarter across the board. The lower end chips were reduced (Pentium 150 MHz) by about 40% while their top of the line chips Pentium Pro and Pentium MMX 166/200 were not reduced at all. Thus, I my guess is that profits will increase approximately 20% this next quarter due to the lack of price cuts alone. With increased production at their fabs this might make their profits go up even more. I think they will make $2.50/share this next quarter. Then, give or take a little due to an increase in R&D expenditures.

Does anyone else have estimates with an explanation?

Nathan
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