Jules,
Obviously, the report was not that great as far as pure performance for the quarter, not what we are used to. The biggest impact seems to be to lift a cloud of worry over how Intel is managing their product transition, and also what is percieved to be stronger competition. It certainly appears that Intel is maintaining very acceptable gross margins, fair revenue, in an extreemly difficult business situation.
I don't think anyone was *too* worried about 1998, but any momentum maintained in the 2nd, 3rd and 4th quarters should be multiplied several fold in 1998. I believe that is the real story behind these earnings and the subsequent market reaction.
In support of this argument I would point out that Intel is just above where it was before the warning, and will probably now make up the ground to where it *would have been* if the warning had never been issued. It almost restores your confidence in the markets, they seem to be pricing Intel on it's future (now), not on the 2nd or 3rd quarters.
Thanks for your call on Intel earnings in public and by email, if gave me the confidence to hold some recently bought shares (although I do have a few worthless protective puts, if anyone would like to exchange them for a cup of coffee <g>).
Thanks,
John
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