Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 50.59

+4.9%

Feb 6 9:30 AM EST

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To: Thomas J Pittman who wrote (4486)	10/22/1996 6:08:00 PM
From: Harry Landsiedel	of 186894

As a long term investor in Intc, I agree with you that Intel was very undervalued at the beginning of this year. However, based on some reasonable estimates going forward, I would not agree that "the upside potential for INTC over the next 2 years is starting to look rather drab with respect to risk/reward." If we assume a 19% average growth in earnings over the next five years (compared to 36% for the last five years) and an average PE of 16 going forward (compared to 13 for the last 10 years), Intel currently has a 3.3 risk/reward ratio and offers a total return of 19% over the next five years. These estimates were developed with the NAIC (National Association of Investors Corp.) model and started conservatively with 96 EPS at $4.77 (before the 3Q blowout.) Using this software, INTC is a buy up to about 120. HL

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