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Technology Stocks : Intel Corporation (INTC)
INTC 50.59+4.9%Feb 6 9:30 AM EST

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To: Fred Fahmy who wrote (2984)8/19/1996 8:57:00 AM
From: Road Walker   of 186894
 
Fred,

In order for Intel to earn a higher PE, it has to overcome the street's perception that it is a cylical company, with STEADY growth . The historic average PE for Intel is about 14, 20 is the all time high. I believe the current PE is based on 4th Qtr. 1996 expectations, not on a changed perception in the market.

IMHO, it will be hard for Intel to hold at this level with a flat 3rd Qtr. Could be some buying opportunities over the next three months.

John
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