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Technology Stocks : Intel Corporation (INTC)
INTC 45.51+10.7%Jan 9 9:30 AM EST

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To: Paul Chiu who wrote (1812)6/12/1996 12:50:00 AM
From: Paul Engel   of 186894
 
Paul -

Luckily Intel's board is smart enough not to do this. Spending a $1+ billion per fab is risky, but they are managing to grow their revenue and earnings by more than 4% per year, as well as the stock, investing in these facilities and R & D.

As long as this continues, building wafer fabs and "next generation" microprocessors is a much better investment.

I am basing this opinion on a goal of steady growth in Intel and its stock valuation - and not on a get-rich-quick scheme.

As you pointed out, Intel has parlayed their investments into a dominant position not seen since the Steel-Era.

Which brings up an anecdote re: the steel industry. I had the opportunity to work in a major steel firm's R & D Department while a college student on summer vacation. I knew little about stocks and dividends then, but I guarantee you - there WAS NO INVESTMENT IN BASIC TECHNOLOGY OR MANUFACTURING.

Today, the dividends are long since gone - and so is the steel company - Youngstown Sheet & Tube. RIP

So much for the big dividend pay out.

Paul
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