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Technology Stocks : Intel Corporation (INTC)
INTC 48.59-1.3%3:59 PM EST

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To: Paul Engel who wrote (22827)5/25/1997 9:04:00 PM
From: Fred Fahmy   of 186894
 
Paul,

<Many people wonder why a company such as Intel is selling for an incredible $163 per share.>

What I find truly amazing and incredible is that even at 163 INTC continues to trade at a significant DISCOUNT to the average semi company. Can anyone explain this!! INTC is not an average semi company. It is the premier semi company and as such I would think it should be capable of supporting at least some premium not a discount.

To put things in perspective consider these numbers. If INTC was afforded the same forward looking P/E as LSI it would be trading at 272 today! If INTC was afforded the same forward looking P/E as MU it would be trading at 290 today. INTC at 163 looks relatively cheap to me.

FF
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