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Technology Stocks : Intel Corporation (INTC)
INTC 33.02-1.8%10:40 AM EST

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To: gnuman who wrote (54523)4/26/1998 2:56:00 PM
From: Mary Cluney  Read Replies (1) of 186894
 
Gene, >>>Also, throw out the small cap's, the Internet companies and companies with negative earnings. <<<

What happens then? You are left with maybe less than 1000 of the 5452 companies in the Nasdaq composite. Then you put them in their respective sectors of which there are several hundred depending on your definition of sectors. So what now?

I'm not trying to be a smart*ss - but my main problem is with people who discuss P/Es with implied authoritativeness and then using historic perspectives that would lead people to believe that there is much more to this than the numerous other metrics people use to evaluate a companies prospects going forward.

Even if I were to say in very broad terms that when buying a stock a lower P/E is generally better than a higher P/E, I could easily have enough material to write a book qualifying that statement.

Further, there is nothing that I know of that can tell me why you have to pay more(higher P/E) for MOT (32.89), ALTR (26), or NSM (30.74) than Intel.

The next point that I wanted to bring out was that, generally speaking, companies are worth what people are willing to pay (just as when you are buying anything) - and that has a lot to do with sentiment that could be manipulated by someone like Tom Kurlak.

The final point that I want to bring out is that Intel relative to stocks listed on the Nasdaq - Intel's P/E (by almost any measurement) appears to be ridiculously low.

Mary
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