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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: Barry Grossman who wrote (4329)10/16/1996 2:57:00 PM
From: Joey Smith   of 186894
 
Compaq announced VERY STRONG earnings today, even beating high
estimates. Even better for Intel, they also said they were
VERY COMFORTABLE with 4th Qtr estimates & the projected 1996
20% growth rate for PCs. Reading between the lines, these
guys are very confident for 4th QTR which only means good news
for Intel.

I still feel Intel is extremely undervalued at these prices. Come
on, analysts are predicting well over $7.00 a share for 1997. Let's
take one analysts (forget the name but posted on this thread) of $7.25.
Assuming a forward PE of 20 (very conservative considering projected
Intel's growth rate), the stock should be selling at: 7.25 x 20 =
$144 by Jan. 1 1997.

These are more reasonable:
Assuming 25 PE, 7.25 x 25 = $181.25
Assuming 30 PE, 7.25 x 30 = $217.50

Bottom-line: INTEL is still extremely UNDERVALUED!!!

joey
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