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Technology Stocks : Intel Corporation (INTC)
INTC 46.95-2.8%Jan 16 3:59 PM EST

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To: jiggy who wrote (1592)6/3/1996 10:17:00 PM
From: Mo Chips   of 186894
 
I like your idea about stating time horizon. As an Intel share holder, I feel very positive about the future for many of the reasons stated on this thread. However, short term I think that the stock is "fairly" priced. Given a historical growth rate of 20 to 25%, looking back calculating forward, $75 seems fair. This would also put me into agreement with Merrill's 12 mo target price of $90 and 2 yr target price of $120. However, given the current uncertainty regarding the market as a whole, I am concerned that the price will stay flat, possibly until next year. There may be earnings growth, but at some point the stock price is not going to move without revenue growth. How much can you squeeze out of the margins? So, short term (<6 mos) I'd say hold and maybe sell, long term (>6 mos) definitely a BUY.

Mo
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