Paul, There is panick, confusion and contradiction and a lot of fragmentray inforamtions on this thread. Intel has been a performer for years and it misses on quarter and it seems that the world is coming to the end. If we put things in prespectivethat we can see that INTC in a month or two(or maybe less) will recover the lost ground.
This stock will give you the ride of your life, but makes you rich. Those who have no stomach, always can find security in KO, or MO!
Here are my points.
1. Despite the downgrade there are major analysts that refuse to down grade and still maintain strong buy.
2. major fund managers refuse to dump INTC.
3.Compaq and Dell that are very bulish on their earnings, and demand for the Intel's new generation Pentium is very strong. In case of Compaq, the sales are very very strong in Europe.
4. Historically when Intel's move to the new generation of chips,in this case MMX-enhanced Pentiums and Pentium II's, the gross margins goes down. (the company had already warned its margins would diminsih
this year.)
5. Intel is increasing capital spendin this year to 4.5 billion, mostly
to expand factories tht make new chips. Intel is spneding further
2.4 billion on research, against 1.9 billion in 1996.—
6. The law suit by Cyrex and AMD should not effect the the second quarter outlook.
Paul, please let me have your views on the siutation.
Kind regards,
Yaacov
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