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Technology Stocks : Intel Corporation (INTC)
INTC 48.80+5.0%3:59 PM EST

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To: Robert Florin who wrote (7368)1/5/1997 3:36:00 PM
From: d[-_-]b   of 186894
 
Robert, did you graduate from the Russian institute of Business?

How does "looking at the comparative valuation, $122 billion for Intel, $380 million for Cyrix, which one has the most upside potential?" enter into future earnings again?

Let's see Intel's expected to earn $2 this quarter, $9 in 97 and $11 in 98. Cyrix is lucky if they only lose 0.30 this last quarter and $1.33 for the year 96, and maybe just maybe they will earn upto 0.43 in 97.

So with Intel at a paltry 20 times PE in 98 they'd be a $220 stock, for 60% in 12-18 months. Now let's assume Cyrix makes 0.43 cents in 97 at the same 20 times PE they'd be worth about $8.60. If we further assume Cyrix goes nuts and earns a $1 in 97, then at a healty 30 PE, they'd be a $30 stock. That's a lot of if's!

Buy a Cyrix for your PC if you need the speed and the cash, but don't even pretend they're a decent investment.
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