INTEL- Money Making Option Ideas for Small Investors Message Board

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Technology Stocks : INTEL- Money Making Option Ideas for Small Investors

INTC 37.06

-6.2%

3:59 PM EST

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To: IQBAL LATIF who wrote (39)	6/18/1997 6:10:00 PM
From: IQBAL LATIF	of 201

BOB-Why I am sticking my neck out? With so many bear around one more will not make a difference! Soxx closed lower at 306.6, silver lining to the cloud is that the support of even 305 was not challenged seriously, good sign but this is not enough market without momentum is prone to downward pressures and today although it braved the downdraft we cannot afford another listless day like today. I still think INTC has tried to break 141 floor thrice during last couple of weeks but have not tested the resistance of 151-152, I would suppose that INTC may test that level. If INTC fails techs are not going anywhere without INTC, strange umbilical chord for the entire sector. In absence of any furhter negatives I would suppose INTC to go up in next few days, MU ORCL JBIL have posted respectable earnings whereas market whispers even expected MU to come with disappointing figures. Nice for market to take a breather and attempt to scale the next hurdle, one thing strange about this market is that there is a certain floor under big movers like IBM MSFT INTC DELL take 10% of them and they start looking ridiculously cheap. I don't seem to understand where is the hype or irrational exuberance, what I term as irrational exuberance is NIKKEI sitting on 32000 at P/E of 80 or IP trading at 65 multiple, look at forward growth earnings rate of IBM and INTC 12 & 18 for 98, for a company that dominates the entire CPU industry it is not a bad p/e. A market where 2 trilion $ of market cap is secure and a 10 % downward moves makes it to qualify a rating of 'compelling valuations' is not ready for a 'meltdown'. People tend to forget that US markets have been badmouthed by European fund mangers for far too long, first they were worried about financial meltdown due to fiscal deficits then two years have been wasted in vain search of inflation by even respectable analysts, now belatedly they have woken up to this big new profitable market and dumping money like crazy on stocks that will never perform. Tech market has a reputation not to take any prisoners and as far as this is in currency the future of the market is in safe hands. Look at todays downgrades DELL CPQ GTW the market is ready to deal with 'exuberance' with mechanism well in place. Negative sentiments from contrarian point of view are positive. Yes, I will take short positions if SOXx breaks 302 but it will come back up with vengeanence and short play is advisable only with extremely sharp precision. INTC is a long play like IBM but we will wait and see as earning season evolves, for me I am niether a bull nor a bear but a realist. Come what it may be we are ready to face but people who worry about meltdown should take cue from resiliance this market has. Earnings is the key if earnings start falling short we should change our view, at the moment macro economic and earning picture looks intact.

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