Interesting observation, Stephen. I like the word: "funk". Am I the only one that sees Intel as this giant, powerhouse company of the world? A company that is leading the computer revolution, a fundamental change in the way the world functions..equal to the industrial revolution?
No one hates Intel like they hate AOL and MSFT. The competition is bearly strong enough to keep Intel on its toes. It has short term and long term plans to command the entire computer universe. I dare anyone to say they will fail in this mission.
How then can a company of such might and potential be trading at the same price at the end of 1997 as it did at the beginning of 1997? The answer is: "I don't care". All I know is the pressure has been buildng with this stock ever since it fell off its $100 perch. At a P/E of 18, and national interest rates below 6%, at $71, you would think this company was a slug!
Sears and Roebuck has a P/E of 26, with a $1.65 earnings per share. And yet Intel has a $4.00 EPS with a P/E of 18. I do not claim any special knowledge, but Intel is in a GRAND FUNK! The Asian flu, the lowering of a chip price, or the "January effect", will all seem like like trivial pursuit when Intel decides to sneak into a phone booth and change from Clark Kent into SuperCompany.
When that happens, I bet this thread will not be discussing $75/share or $85/share. And I bet it won't take until the second half of 1998 before investors realize that Merced is not only a town in California.
Greg |
