>re:Intc drops to $48 or forward looking p/e of 16 based on new estimates. Not likely but not impossible. If there were not a gap in that region I would not bring it up.
I'm sorry, but I think that you and Vinod K. should get together, I think that the presence of a "gap" is ABSOLUTELY, TOTALLY irrelevant.
That said, I also think that generally even your scenario would not push Intel down as low as 40. Sixty, yes, low 50's, maybe, but not 40.
And, THAT SAID, I do think that there is a 40's scenario, but it involves a worldwide crash, probably triggered by Korean banks failing in large numbers, which brings down Japanese banks, which brings on the rapid start of a worldwide crash, and possibly of a worldwide depression. I think its possible; I don't think it's likely.
But, as for your gap, I don't think that the market has any more interest in a gap than a roulette wheel has in what happend on previous spins.
Barry Watzman |
