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Technology Stocks : Intel Corporation (INTC)
INTC 37.81-4.3%Dec 12 9:30 AM EST

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To: Mary Cluney who wrote (73221)2/9/1999 7:47:00 PM
From: Harry Landsiedel   of 186894
 
Mary Cluney. Re: "My feelings also is that Intel has stayed undervalued these years, in part, for a lot of pathalogical reasons that I can't really seem to figure out." I agree. Every once and awhile, a great company comes along and continues to sell well below the multiple that others who are growing as fast or even slower sell at.

For example, Intel probably has one of the lowest PE/Growth rates in the top 50 large cap stocks. Yet they have a 92% share on a revenue basis. Who'd a thunk it. But undervalued stocks will catch up. When Buffett bought his large position in KO most of the analysts said KO was doomed to the slow growth track. He waited for the right CEO and then plunked down lots of cash. The rest is history.

Here's an interesting article on overvaluation and undervaluation by Peter Lynch.

worth.com

Enjoy.

HL
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