Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 36.78

+2.7%

Nov 26 3:59 PM EST

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To: milo_morai who wrote (129811)	3/11/2001 11:55:32 PM
From: Dan3	Read Replies (1) of 186894

We appear to be at one of those famous inflection points everyone likes to talk about. Last quarter Intel made 32 cents per share with about a fifth of that being from investment gains. This quarter there will be almost no gains. 32 x .8 = 26 Last quarter Intel had GM of 58%, this quarter its 52%. 26 x 52/58 = 23 Revenue from operations is expected to be down about 25% from last quarter. 23 x .75 = 17 Historically, Intel has made about a quarter of its profits in the first quarter, and traded at a P/E of around 25. .17 x 4 x 25 = $17 Now we see rumors of a Tier 1 vendor going with AMD chips in SMP servers. There have also been rumors of Tier 1 vendors moving to AMD chips for notebooks. $17 looks like a ceiling rather than a floor for Intel. If AMD doesn't warn, it should be able to avoid the downdraft - it's got to be getting obvious that there's more going on than just a bad sales environment. Dan

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