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Technology Stocks : Intel Corporation (INTC)
INTC 46.48-3.6%3:59 PM EST
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To: damniseedemons who wrote (84)11/30/1995 10:10:00 PM
From: olduser   of 186894
 
To Sal
I'm a computer dealer in Redmond, WA (Microsoft's backyard) and I move
a lot of Pentium clones. I don't get too many people lining up for the
midrange speeds. 100 to 133Mhz is the main selling range.
In our industry Packard Bell has one of the worst reputations. A few
years ago they got busted by the FTC for using used parts in their
systems. Their service sucks and they typically built in some proprietory
stuff (eg video and I/O's on most of their machines are built into
the motherboard).
On balance as the debt problem with Intel shows, how can anybody sell
inferior quality with lousy service at low margins and survive ??
Compare PB with Dell. Here you're talking about a management who knows
what the hell they're doing. Decent quality at reasonable prices and
in their last quarter they even exceeded analysts earnings estimate.
In fact Dell's stock was beaten because they had problems buying parts
in enough quantities to build machines as fast as their assembly lines
can churn them out.
I think the PC market would benefit if PB went belly up. Prices would
stabilize and after a temporary panic stock of companies such as HP
and DEll and Compaq would go up because of improved earnings potential.
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