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Technology Stocks : Intel Corporation (INTC)
INTC 40.51+0.4%Dec 9 3:59 PM EST

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To: andy kelly who wrote (111384)9/26/2000 6:18:28 PM
From: Harry Landsiedel   of 186894
 
andy kelly. Re: "I've been on vacation and am just catching up on old posts and came across this one-good call "

Actually 44 is fair value. For a bargain read the following.

"So if Intel's long term growth rate is 20%, then an AVERAGE PE of 20 is appropriate. Since Intel's average low PE over the last 10 years has been 53% of the high PE, a forecast of a high PE of 26 and a low PE of 14 would not be unreasonable. (Intel's ACTUAL PE over the past 10 years has averaged a high of 26.1 and a low of 13.4, so these aren't far off) So a fair price for Intel based on the company making $1.70 for 2000 would be 44. A bargain would be 22."

The best time to buy Intel is just after someone yells fire in a crowded theater. Kumar is doing his best, and we may get there yet.

HL
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