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Technology Stocks : Intel Corporation (INTC)
INTC 50.88+5.4%12:04 PM EST

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To: alex simonson who wrote (7723)1/9/1997 3:43:00 PM
From: Larry Loeb   of 186894
 
Alex,

You have one heck of an impressive background. I must disagree with you, however, on two points:

1. While the Fed may eventually raise rates, I do not believe (and the market currently concurs) that the evidence of inflation are sufficient to lead to an increase in the near term. Further, these days the Fed tends to follow the market's lead (unlike the 80's) and the market is only mildly skittish long term.

2. Intel's PE on a trailing basis is high (approximately 26 if the analysts are right about next week), but on the basis of next year's expected earnings, the PE is closer to 17.75. I do not believe, therefore, that Intel is presently overvalued. It is, however, close to reasonably valued (IMHO).

Larry Loeb
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