John, I've found that whenever Intel is about to launch a new product or platform, the stock tends to underperform due to all of the uncertainty associated with the launch. I believe this was the case with PII & PIII. There were all these rumors about the chips underperforming in benchmarks relative to competitors, potential demand issues, etc. I think this is what's happening now, except we now have 2 major lauches: P4 and Itanium. Of course, some of this may be real mgt. problems, since Intel is a much more complex company as it diversifies. I believe this is what's happening with Lucent right now.
Personally, I'm in it for the long-haul, & I think Intel will continue to be a winner in the long-haul. However, I'm not very impressed with Barrett's leadership skills. I'm not blaming him, per-se, but he has done little, imo, to reduce any uncertainty. The jury still's out on his mgt. skills. He says the right things, but we haven't seen evidence yet that Intel is a much more efficient company.
Joey |
