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Technology Stocks : Intel Corporation (INTC)
INTC 34.50+2.6%Nov 21 9:30 AM EST

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To: TTOSBT who wrote (51280)3/25/1998 11:32:00 PM
From: Fred Fahmy  Read Replies (1) of 186894
 
TTOSBT,

<I would like to see the PE half of what MSFT's is, currently 58. So PE of 25 to 30 would be sound in today's interest rate environment.>

Have you worked through the math of what you are suggesting?? Lets assume you would like a P/E of 27 purely based on reducing the number of shares. For INTC to all of a sudden have a P/E of 27 you would have to remove about $450 million shares or about $35 billion worth at todays price. Does this seem realistic?? Just to take the P/E up to 21 (from today's approximate 19.5 P/E) it would take about $9 billion worth of shares.

FF
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