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Technology Stocks : Intel Corporation (INTC)
INTC 50.58+4.8%3:59 PM EST

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To: mauser96 who wrote (6793)12/22/1996 9:46:00 PM
From: Stu E.   of 186894
 
I believe INTC can acheive accelerated growth in quarterly earnings from 40% growth the last 5 years to an increase in earnings to 60% to 80%+ over the next several quarters. This acceleration in quarterly earnings should result in PE expansion if there is an expectation that the high percentage increases in earnings can continue.

The critical questions are, how long can Intel achieve earnings growth and what will the growth rate be? If Intel can acheive a sustainable growth rate >50%, shouldn't the PE multiple be >35?

Is it implausible for INTC to sell at the same lofty PE as Microsoft?
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