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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 9:30 AM EST

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To: Tunica Albuginea who wrote (44691)1/9/1998 6:58:00 PM
From: Jules V  Read Replies (2) of 186894
 
I think its funny that now that we hit a patch of trouble suddenly Asian markets are deemed not so important.

ie. Through the "goldilocks" years among the major driving factors were hyped as: corporate restructuring, productivity improvement due to technology, low inflation, growth of world markets.

The market was firing on all cylinders in terms of valuations discounting future earnings growth. A stock only missed earning for a few quarters or by a few cents to be punished. Removal of economies with 6-10% growth will impact expected profit growth to at least that extent on many bottom lines. This will lead to more "irrational inexuberance" than necessary and temporary punishment of the innocent.

Using the P/E valuation method intc does not appear to have excessive growth built in right now. As long as it maintains its margins that is. This likelihood looks good by Merced time I would bet.
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