Intel Corporation (INTC) Message Board

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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: Road Walker who wrote (4166)	10/14/1996 7:50:00 PM
From: Fred Fahmy	of 186894

Hi John, A real recession will hurt just about everyone as you indicated. However, I don't think that this defines a cyclical stock. My point is that the PC industry itself is not cyclical like most semi companies. Commoditity chip producers are cyclical due to the non-cyclical continously expanding PC market. As PC sales go up there is more demand for chips. Demand out paces suppply. Chip prices rise until extra capacity is brought on line. Too much capacity causes chip prices to fall. More and more PC's are sold and eventually demand catches up and out paces supply again. Therefore, the commodity chip makers can experience cycles even in the face of steadily increasing PC sales. Since Intel enjoys a virtual monopoly they can control capacity/prices for their products. Sure INTC will correct sooner or later. Stocks go up and down. Corrections are great opportunities to buy additional shares, but I don't think it is wise to try and guess these corrections. Just let them happen and buy more. This is my investment strategy. Obviously there are many others strategies which may work as well. FF

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