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Technology Stocks : Intel Corporation (INTC)
INTC 34.50+2.6%3:59 PM EST
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To: Gary Ng who wrote (107825)8/21/2000 12:30:52 AM
From: puborectalis  Read Replies (2) of 186894
 
Intel's chips run LNUX's servers......".The most exciting news, though, comes from VA Linux. Although
the
company's stock price has struggled the past six months, its revenue growth
hasn't slowed at all. In the company's fiscal fourth quarter, which ended in
July, sales increased 470% over 1999's fourth quarter. Based on 2001
estimates, the company sells at a price-to-revenue ratio of 4.9. Competitors
Sun Microsystems and Dell (DELL) have traded in the past year in a range as
high as 8.7 "even though LNUX is expected to grow continually faster," says
Deutsche Bank Alex. Brown analyst Phil Rueppel, who recently upgraded the
stock to a 'strong buy' recommendation.

VA Linux' core business of selling servers optimized for the Linux operating
system got a big boost when company programmers developed a new
build-to-order-software system (called BOSS). The Web-based service allows
customers to input their exact needs and then places only the necessary
software on each computer. The entire process is entirely automated. "This
extends Michael Dell's vision of build-to-order hardware into the realm of
software," says CEO Larry Augustin. "This is a truly revolutionary product, and
it gives us a huge competitive edge."
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