Tim, I am looking at Merrill Lynch's most recent take on Intel, FWIW they don't agree with you on a few things:
1. Intel's 4th quarter net will be $1.8 Billion, not $1.9. A minor difference, I agree.
2. Merrill Lynch projects that in 1999 Intel will sell 6.2 million xeons, 4.6 million pros, 49.7 million PIIs, 46.9 celerons, and no merceds. Projected 1999 total sales, $28 billion vs. $26 billion for 1998. Projected 1999 net, $9.45 billion, vs. $8.75 billion for 1998.
That IS an increase in the net, but only 8% year over year. Further, Intel's net year over year from 1997 to 1998 was only 8%. Earnings per share increase from 1998 to 1999 is projected to be only 9%, which is at least better than the negative (-)14.7% EPS growth from 1997.
You don't have to guess what the profit margins are, they have 26.5% return on equity in 1998.
I hope you don't think I am saying derogatory things about Intel, these are simple facts, and, as the Gipper said, "facts are stupid things."<g>
CobaltBlue |
