Another perspective wintelco1
9/22/00 1:25 pm
From Jim Seymour of RealMoney(Street.com):
Consider the meat of the Intel warning:
Weaker demand than expected in Europe for Intel CPUs -- no surprise there -- and maybe a quarter-over-quarter increase of only about 3%-5% over second-quarter sales of $8.3 billion.
Gross profit margin around 62%, down from the 63%-64% of Intel's earlier guidance.
That's it. And that doesn't equal a 20% drop.
Consider that if the overnight bloodletting bottoms out around 49, that puts Intel back where it was, split-adjusted, in late January, and still up about 20% for the year. Not much consolation, I know, if you bought in, say, late August, in the mid-70s, but worth considering.
Even more, do you really think Intel is a $49 stock? Or that the price is going to be in the $40s in a couple of weeks? Not me: I suspect it will recover to the upper $50s pretty quickly, and into the $60s -- where it opened Thursday -- within six or seven weeks.
In other words, if you're an investor, not a trader -- if you have a chunk of your 401(k) or your kid's college fund tied up in Intel -- this is a stupid time to sell |
