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Technology Stocks : Is Intel a $100 stock next year
INTC 40.16-2.9%Oct 30 3:59 PM EDT

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From: Michael Olsen1/6/1996 12:30:00 PM
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Intel will not make $1.11 this quarter. I love the stock and hold it, and think
that Intel is a great buy, but it won't make $1.11. Remember, Intel slashed
prices early this fall, and they will likely report diminished margins as a result.
Intel felt the pressure to boost Christmas sales, and they had to absorb some of
the cost pressures to do it. Intel didn't reduce costs on fab enough to compensate
for the lower prices on chips, and Intel didn't introduce any new chips in the quarter
to replace the lost revenues when P-120's and P-133's were selling for $700 and
$800. This quarter, they were about $300.
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