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Technology Stocks : Intel Corporation (INTC)
INTC 39.54+7.5%10:57 AM EST

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To: nihil who wrote (69561)12/7/1998 4:24:00 PM
From: GVTucker  Read Replies (1) of 186894
 
nihil, RE:<<If it can be shown that with ordinary research (like attending to Intel's guidance which has proved correct in the past) he should have known better, the aggrieved clients might win.>>

At least over the last 2 years, Intel's guidance has proven anything but correct. When things were going poorly over the past year and a half, Intel had to twice warn because they guidance was too optimistic. When the business turned, Intel similarly had to twice preannounce because things were much better than expected.

Which just goes to show that no one can be trusted to estimate earnings in this business, not even the people closest to it. Which is why I am so surprised when the stock reacts so sharply when earnings are a penny or two above or below "expectations." The emphasis that many put on those expectations will never cease to amaze me, particularly with a stock whose earnings are as volatile as INTC.
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