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Technology Stocks : Intel Corporation (INTC)
INTC 48.26-0.7%Feb 5 3:59 PM EST

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To: Michael Berkel who wrote (4139)10/15/1996 6:42:00 AM
From: Doug Fowler   of 186894
 
Intel certainly blew forecasts away this quarter, and obviously this is one great company.

Whether they deserve a P/E of 25 is quite different from whether they will be awarded that by investors. Historically, they have not, and Intel has grown like this before.

When you look at what they spend on capital expenditures and what their free cash flow is, you get a much lower free cash flow than what they report as earnings, and this is probably why that P/E has
typically been lower.

Doug
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