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Technology Stocks : Intel Corporation (INTC)
INTC 36.08-3.2%3:59 PM EST

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To: Amy J who wrote (135896)5/23/2001 8:06:18 AM
From: GVTucker  Read Replies (1) of 186894
 
Amy, RE: When the semiconductor companies were experiencing low profits - did Cheney pound on Bush to investigate why many of America's fine corporations were experiencing decreased earnings ?

If Intel had increased chip prices by 10X's during last year's shortage, rather than keeping prices reasonable as they did, I bet the government would have been on Intel's case in one form or another.


I didn't realize that you thought Intel's products were commodities. For Intel to be comparable to the oil and gas companies, that would need to be the case.

There's a reason that oil and gas companies are currently trading for 4x cash flow right now. It is because they cannot control the price of the good they sell. Their goods are commodities.

Intel trades at a PE of almost 50 right now. They can control the price of the goods they sell. THAT is why the government would likely be in Intel's case in the situation that you cite.
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