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Technology Stocks : Intel Corporation (INTC)
INTC 49.09-0.3%2:47 PM EST

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To: Fred Fahmy who wrote (37084)10/21/1997 12:38:00 AM
From: Factfinder  Read Replies (1) of 186894
 
I find it hard to believe that Investors view IBM' s results so favourably when if you compare year over year to Intel

Rev Growth Profit Growth P/E

INTC 12% 20% 21.2
IBM 3% 6% 17

Additionally IBM' s cash position decreased as a result partly from its aggressive share buyback program which was debt financed. Intel is Debt free and cash rich and clearly a leading technological innovator in their field. IBM doesn't stand out in any of their divisions in the way Intel does. There is no sound reason in my analysis why Intels results should be perceived so negatively when there is a definite product life cycle transition taking place and in the long term Intel will enhance its earnings considerably while not suffering in the meantime. It just goes to show you how many people don't look beyond today to see emerging long term opportunities. My solution

Load up on Intel on weakness without hesitation.

Each to his/her own
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