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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: Nathan L. who wrote (1696)6/5/1996 11:01:00 PM
From: Fred Fahmy   of 186894
 
Nathan,

"Intel owns 90% of an extremely lucrative market that has many barriers to entry. If the government wanted to break them up, they would have done it already."

I strongly disagree. I think Cyrix is the only thing between INTC and government action. There is a huge difference between 90% and 99%. Although Cyrix is not the only compeition, it is the only real competition (if there is any real competition). To be sure, I don't think Intel is intentionally giving away share to Cyrix, but I think it is healthy for the industry and Intel. Competition is a key driving force behind innovation.

Personally, I think Intel is the greatest technology company in the world. Investing long term in INTC is a no-brainer. In my opinion, INTC is cleary undervalued. There is no reason this stock shouldn't support a PE of 20 or 25.

FF
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