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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: RetiredNow who wrote (52333)4/7/1998 8:07:00 PM
From: Jacob Snyder  Read Replies (2) of 186894
 
re: sell this dog and put the money in Cisco:

Look at where CSCO and INTC are in their 5-year PE ranges: CSCO at the top, INTC below it's usual midrange, although certainly not as cheap as in 1996. I've been watching CSCO for three years, and the only time I was willing to buy was in April 1997. Now, after a huge run-up, when every analyst has a strong buy on the stock, is exactly the wrong time to be buying. And if you bought INTC a year ago, you bought it, too, right after a big run-up. The law of reversion to the mean, an iron rule of behavior and statistics, is working against you. Being a momentum player only works if you jump in before the crowd.
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