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Technology Stocks : Intel Corporation (INTC)
INTC 40.16-2.9%Oct 30 3:59 PM EDT

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To: TTOSBT who wrote (51129)3/25/1998 11:25:00 AM
From: Thomas M.  Read Replies (2) of 186894
 
I strongly disagree with your contention that INTC should leverage itself up, a la IBM. INTC's strong balance sheet is a powerful tool for future growth (and survival if tech goes into a big recession). IBM has mortgaged its future to prop up its stock price in the near-term, whereas INTC has prepared for the future while leaving its stock on its own for the short-term. Check out IBM's credit rating history during the last few years, compared to INTC's.

Regarding services, IBM's accounting in that area is rather "unique" to the field, and might have something to do with those nice service earnings.

Tom

If Jules G. stills hangs around here, I'm sure he can explain IBM's long-term problems in greater detail.
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