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Technology Stocks : Intel Corporation (INTC)
INTC 40.34-2.6%3:59 PM EST

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To: Paul Engel who wrote (89807)10/12/1999 12:02:00 AM
From: Aaron Cooperband   of 186894
 
Paul -

Re: "But the key element here is establishing new sources of REVENUE STREAMS - and eventually FREE CASH FLOW - from old and new customers making use of the Web Hosting Facilities"

One thing you neglected to mention - most companies participating in internet business now are doing so at a loss. They're hoping to establish a niche for themselves that will provide profitability at some point in the future.

By providing a service to the firms doing business on the internet Intel will participate in the growth of internet commerce, but since they provide infrastructure they should be able to demand a profit from their customers. I expect that with this strategy Intel will be able to avoid the necessity of running a negative P/L internet business (although free cashflow may be negative for quite awhile as the business grows).

Aaron
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