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Technology Stocks : Intel Corporation (INTC)
INTC 48.26-0.7%Feb 5 3:59 PM EST

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To: Pyrrhuloxia who wrote (7938)1/12/1997 8:50:00 PM
From: Rajeev Bajaj   of 186894
 
My prediction is based on:

- Moto earnings statement, which includes manufacturing & other costs.
- Intel projected revenue for Q4 ($ 5.6 billion)
- Intel Gross margins (57 %)

Applying similar cost numbers, Intels' net profit % comes to ~ 35 %. With 900 million shares outstanding, their EPS should get to > $ 2.15/share. I agree this is far from perfect way to determine EPS, but numbers seem to be fairly reasonable. This also jives with Tom Kurlaks projection of $8.80 - 9.00 /share for Intel 97 earnings. Intels' Q4 seems more in line with their 97 projections rather than previous 96 quarters.

Once Intel delivers > $ 2.10 EPS, I feel stock price will correct to PE for 97 earnings.

Rajeev
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