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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: jmac who wrote (8302)1/15/1997 7:37:00 AM
From: Road Walker   of 186894
 
jmac, re margin erosion

Good Morning. Intel stated that their 1st quarter margins would be lower; '97 margins would fall to 60%, +/- 2%; and (according to WSJ) long term could fall to 50%. This is significant. A percentage point difference in margin has a big impact on bottom line earnings (if there is an accountant on thread, he could elaborate).

All of last years forward looking statements predicted higher gross margins. This is a reversal of the trend.

Don't get me wrong, I would buy more Intel yesterday at 147 if I could. What was the saying?, "futures so bright ya gotta wear shades"? Just wanted to add a note that everything isn't *perfect*, never is in any business.

John
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