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Technology Stocks : INTC

INTC 35.53

-1.1%

Nov 14 9:30 AM EST

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To: Thomas J Pittman who wrote (588)	7/21/1997 2:11:00 PM
From: Tom Pulley	of 990

Thomas, I am in a similar position as you and couldn't resist commenting on your question although I don't have the technology expertise to provide input on most of these threads. I decided to hold my Intel even though it is not the value it was in early 1996. If you look back at Intel's growth rate over the years, on a long term basis it consistently exceeded the forecasts. If you assume a 25% growth rate for 5 years and constant PE you can get a 200% gain in 5 years. If the growth rate is only 15% you get a 100% gain in 5 years. With our tax position, for each $1000 of Intel we sell, we will have about $800 to reinvest. So you would need a 150% gain to double your current equity with a new stock. I have sold out of more than one good stock because "it is no longer a good value" only to regret it later. In recent years I've followed a rule to sell only when a stock has gone to absurd valuations which for Intel is probably around $150 (PE of 40 on '97 earnings). Good luck on your decision. By the way, if you have some stocks identified that are much better values, I'd love to hear about them. I am having trouble finding good values these days. Best Regards,

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