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Technology Stocks : Intel Corporation (INTC)
INTC 33.62+0.3%Nov 20 3:59 PM EST
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To: BlueCrab who wrote (25253)6/27/1997 12:27:00 PM
From: Barry A. Watzman   of 186894
 
A lot of you seem to feel that 3Q will be good; I'm not so sure. Even if sales/revenues pick up, the upcomming price cuts are so steep, that margin and earnings could be down even on substantially increased sales. The price of many products is being cut 30% to 50%, including some MMX products [look at the 166 and 200 MMX]. I don't think that the volume gains necessary to make up for the margin losses are realistic. I am not sure that this will turn around quickly, we might be in for a fairly long period of unexceptional results -- perhaps until Merced.
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