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Technology Stocks : Intel Corporation (INTC)
INTC 45.51+10.7%Jan 9 3:59 PM EST

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To: Mary Cluney who wrote (50905)3/21/1998 12:42:00 PM
From: Night Trader  Read Replies (2) of 186894
 
Mary, Valuation is not just a matter of comparing PEs; you have to look at earnings dependability as well. Gillette and Coca Cola have earned their high valuation with the steadiness of their income stream. Intel has a lower PE because rightly or wrongly it is still seen as vulnerable to shifts in technology. A price/ sales multiple of 5 means high margins and high margins unless you're an absolute monopoly like Microsoft means pressure from competitors and customers.
As to AOl, that's not investing; that's just speculation.
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