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Technology Stocks : Intel Corporation (INTC)
INTC 48.59-1.3%Feb 4 3:59 PM EST

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To: Nicholas E. Gassaway who wrote (4357)10/23/1996 5:35:00 PM
From: Harry Landsiedel   of 186894
 
Several reasons: Last year the market lumped Intel with all the semi-conductor companies and the price tanked. 4Q earnings were flat and revenue was flat on a sequential basis in 1st and 2nd Q (I believe). Thus Intel did not show the steady revenue and earnings growth necessary to garner a higher PE.

Since PC sales are seasonal, with peaks and troughs, the PE range will be wider than with other less seasonal items.

Still, in all, IMHO Intel's average PE will move up over time, as it moves into the server area and demonstrates its powerful franchise.

HL
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