Intel Corporation (INTC) Message Board

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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: Paul Engel who wrote (53970)	4/20/1998 8:21:00 PM
From: Maverick	Read Replies (2) of 186894

Briefing.com removed Intel from our list of Core Portfolio recommendations. Intel off the List We have removed Intel from our list of Core Portfolio recommendations. There are risks to Intel's business outlook that the market is underestimating. Briefing discussed Intel's situation at some length in aStock Brief last week after the earnings report. What concerns us most is that the slowdown in Intel's earnings and profits are not due to the Asian situation and therefore may not prove temporary. In fact, the Americas region accounts for a great deal of Intel's slowdown. The U.S. economy is strong, and technology is a growing part of the economy, yet Intel is not benefitting. In the past Intel was able to overcome constant price cutting because of strong unit growth while PC's everywhere had to be upgraded for more power. Now, bandwidth is the key technology bottleneck as the Internet takes off. It is not PC power. The power curve may have slowed such that Intel won't have the assumed rebound in the second half of the year. Briefing isn't bearish on Intel. They are still a dominant firm. But revenue growth is dead flat, profits are sliding, and profit margins are forecast to sink even lower. The number one manufacturing growth company of the past decade is now cutting jobs. While we aren't bearish on the stock, we think it can no longer be bought just on the name. The stock is up modestly from 71 7/8 when we first put it on the core list in November.

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