Jim, Re:"Interesting that Intel was at 94 1/4 when Paul wrote that and now Intel is 80 1/8. I wonder what happened to such a rosy picture."
Actually, things ARE ROSIER than when Paul wrote his excellent article 7 months ago:
1. Roll-out of Merced is on schedule for '99.
2. More OEM's have embraced the chip (Sun, SGI, Etc).
3. Intel is on schedule to grab a greater % of the high-end (high margin) server market.
4. Pentuim II rollout will result in sales/revenue/margin increases point forward.
5. Introduction of Celeron(a.k.a Celery) will neutralize, suppress, distract the "competition" at the low end, further eroding their market share.
5. Sales of PC's in China, India, Europe are increasing.
6. Intel announced increased buy-back of 100,000,000 shares. As long term holder, I would prefer that the buy back price be $80 (vs $94).
(Many of us here on this thread don't plan to sell in the next three months!). I'm sure thats hard for you and others to understand.
A short Quiz*: "If you plan to eat hamburgers all your life and are not a cattle producer, should you wish for higher or lower prices for beef? Likewise, if you are going to buy a car from time to time but are not an auto manufacturer, should you prefer higher or lower prices? These questions answer themselves."
* Warren Buffet (Bershire Hathaway, Annual Report)
berkshirehathaway.com |
