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Technology Stocks : Intel Corporation (INTC)
INTC 48.12-0.2%10:08 AM EST

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To: Road Walker who wrote (9020)1/22/1997 4:26:00 PM
From: Brian Malloy   of 186894
 
John,

I'm not really sure whether CPU's are a cyclical product or not. I just know that two years ago if you asked an analyst about INTEL and microprocessors in general they would say its a cyclical industry. INTEL has done a lot of work over the past two years in educating brokerage firms and analysts, showing them that INTC is in a growth industry and that their stock in particular was undervalued. I think that this is what is allowing the stocks PE to move up to this level. A paradigm shift so to speak. So we are reaping the benefits right now, especially those who purchased Intel when the PE was in the low to mid teens.

Brian Malloy
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