Intel Strategy for Achieving Wealth and Off Topic Message Board

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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic

INTC 35.53

-1.1%

Nov 14 9:30 AM EST

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To: Captain Jack who wrote (16068)	1/13/1998 7:10:00 PM
From: Maverick	Read Replies (1) of 27012

When bad news equals good news it is often the start of something big... And that could be what is unfolding in the tech sector where disappointing earnings news from Motorola and Lattice Semiconductor sparked a wave of buying... The street was pleased that the companies missed their estimates by no more than a few pennies... Given that both stocks traded sharply lower going into the unknown, bargain hunters used the near misses as evidence that the selling was overdone... In other words, the unspoken message is that Asia will only be a minor annoyance to the tech sector not an anchor around its neck. Based on this assumption, the entire sector engaged in a widespread relief rally... Volume on the upside was good as well... Though the sector's technical underpinnings remain fragile, today was an important first step toward solidifying the foundation for at least a short-term trading rally. Look for additional gains in today's session (1/14) as Intel managed to better than expected earnings... Though the number fell short of highly optimistic forecast which called for company to beat the street estimates by $0.15, the consensus view is one of relief... Another bullet dodged... The chip giant reported earnings of $0.98, a modest sequential gain but well below year-ago earnings of $1.06... Q4 margins were down a bit but not bad (59%) given price war - actually slightly ahead of most estimates... Revenues of $6.5 bln in line with estimates, but only narrowly above year-ago levels ($6.4 bln)... Company's comments regarding potential negative impact from Asia about what was expected... Sees slightly lower margins in Q1 from Q4... Also expects Q1 revenues to be sequentially flat - typical of Q1... Of course what was atypical was the generally flat to weaker Q4 (normally the company's best quarter)... Again, the lack of disastrous news likely to be seen as positive by the street - though stock has rebounded nearly 10 points in recent sessions on assumptions that number would exceed estimates... In overnight trading stock up additional 3/4 to 1 1/2. From Briefing.com

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