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Technology Stocks : Intel Corporation (INTC)
INTC 47.96+8.9%2:36 PM EST

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To: GVTucker who wrote (137968)6/22/2001 3:38:33 PM
From: Road Walker  Read Replies (1) of 186894
 
GV,

re: Then let's grow those earnings at 20% per year. 5 years hence, earnings will be $1.59/share.

Yes but that would be only slightly more than Intel earned last year. I think many people assume that once there is a turn in the semiconductor marketplace, Intel earnings will return rapidly to 2000 levels. After that, they will grow at a more normal rate. That's the reasoning by the markets, and the only way to justify Intel's current stock price.

re: I didn't think that calling 15% annual growth into question would generate this many objections.

Intel's stock price can fluctuate 15% in one month, so 15% in the next year doesn't seem like much to most observers. Also, Intel stock price has seen many short runs in past years of 50% - 100%, and then gone flat for a very long period. Not making any predictions, just saying that it's not a totally unreasonable expectation.

John
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