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Technology Stocks : Intel Corporation (INTC)
INTC 37.51-0.8%3:59 PM EST

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To: Tony Viola who wrote (118085)11/16/2000 1:10:35 PM
From: Hightechhooper  Read Replies (1) of 186894
 
RE: Bonedheaded Joe Osha

I am continually amazed at how a supposedly "efficient" market can give any weight to comments that add no new information to the marketplace. Isn't it obvious to everyone that this guy is trying to generate "sale" prices for his clients so that he can turn around and upgrade everything in just a couple of months? Even if he proves to be correct and the earnings for these companies in the next 2 quarters are somewhat less than current estimates, how can that significantly impact the stock price which is supposed to be based on the discounted value of those earnings over the life of the company. He is not changing those longterm estimates and that is what drives a stock price (in theory).

So, given that markets are not efficient it seems like December is potentially a bad month for INTC in terms of stock price. This is when earning warnings will come from the weak industry players and that weakness will be extrapolated to the whole industry and all its subsegments. People like Bonehead Joe will wait for the stocks to stabilize after that news and then jump in with cries that "the sky is falling".

In January, however, INTC will pull the bag off Bonehead Joes head so everyone can see his true form. He will then disappear from the semi world forever because he was boneheaded enough to make such a vocal, pessimistic stand against one of the most successful companies in the history of the world at a time when major product transitions will reignite demand in its current strongholds and take share from others in its newer market segments.

The moral of the story; Never fight with a gorilla (especially if you are nothing more than a boneheaded analyst chimp...I mean chump)
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